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GBP currency value

just a general question really. all this talk of the uk economy being up s*** creek without a paddle this year, is it going to affect the strength of the £ considerably?

im hoping to go to thailand & the states this year, and already compared to last year the rates are poor (70 baht and $2 last year, 61 baht and $1.91 now) should i buy up now??

many thanks!

Comments

  • dzug
    dzug Posts: 2,260 Forumite
    Yes. No. Maybe.

    Sorry, the answer is guesswork. Given that the US economy is in trouble (arguably worse than us) that could go either way. Thailand - no idea.

    You could hedge your bets and buy some now and the rest later - that way you won't lose as much if things go against you - nor will you gain as much if they go in your favour.
  • Hintza
    Hintza Posts: 19,420 Forumite
    10,000 Posts Combo Breaker
    Sterling is trading at lows against the Euro, the banks are lending to each other nor cutting mortgage rates. The Bank of England has wrongly cut interest rates (IMHO). The government is trying to claiminflation is within limits yet if you look around, raw material prices are going through the roof (Oil, metals, grain and wood in particular).

    I think 2008 could be a really bad year, but as has been pointed out the US is in a worse situation..so you pays your money and takes a chance. I imagine though if you look at a chart of Baht v $US they might track each other (you could check this online).

    But who is to say what will happen to other countries. If we could second the forex markets we would all be very rich ad living in Bermuda!

    I'm afraid you pays your money and takes a chance. Put you money in a high interst account and hopefully that will protect you a bit.
  • Voyager2002
    Voyager2002 Posts: 15,873 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    The Thai baht is linked to the US dollar, so you will benefit from a weak dollar in Thailand as well as in the USA.

    The most economical way to obtain foreign currency is by using a Nationwide card in an ATM when you are there. If you choose to buy cash now you might get a better exchange rate, but any such (uncertain) gains will surely be cancelled out by using a means of getting currency that is far less cost-effective than the Nationwide card.
  • thanks for the advice! so its very much wait and see, think il just top up mine and the mrs isa's with £7200 when april rolls around, hopefully this will cancel out any loss the pound has this year.

    what odds would anyway give on $3:£1 by the end of 2008!!
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