US Dollar rate query

charlie12

Hi guys

I'm due to buy some items abroad, in US dollars. Right now, the rate is quite favourable for us in the UK.

Does anyone know if the rate is likely to improve further over the coming weeks? If so I'll wait as I'm purchasing a few hundred pounds worth of stuff.

Many thanks

Jnelhams

Mr George Soros probably would have the best idea. The rest of us poor mortals can only guess. Unless you are spending thousands - in which case you will pay import duty anyway the best thing is buy now, as the rate is highly unlikely to go more than 10 cents in either direction as has been the case for the last few months.

gizmoleeds

All I know is that the Mirror regularly compares where to exchange money and Marks and Spencer (can you believe) and travlex.co.uk always come out top.

Jnelhams

I shop quite a lot in the USA and if you use a credit card from say Nationwide with no added commission/usage charge, then you would normally get money market rate which is always better than the Tourist rates. Although of course never withdraw cash on a credit card anywhere as you instantly pay interest and fees.

tonyivb

I imagine that the exchange rate is likely to move against you, therefore it would be better to buy now.

This is my reasoning.... the damage caused by hurricane Katrina has already had an effect on fuel/energy prices, and once rebuilding takes place there will be a huge demand for construction materials (therefore the prices of such items will increase).

These increases in prices will have a corresponding effect on inflation, and providing that this is a significant amount the Central Bank could raise interest rates to try and curb the inflation.

As the interest rates are higher this will attract investors (as the returns are higher) who would sell other currencies and buy dollars instead.

As the demand for dollars increases then the exchange rate moves to make them more expensive.

I hope I've got my elementary economics right???

Jem8472

anyone got next weeks winning lottery numbers :rotfl:

N9eav

In the short term though is the US economy going to drop as billions are given away to disaster relief, insurance companies fork out etc. The US may not be the best place to invest so perhaps the dolar will weaken for a few weeks? Just a thought.

trina76

Im off to NY in November, so best to get the dollers now rather than wait till before I go?

charlie12

Thanks for the replies guys, some interesting points there.

N9eav

you can see that the dollar exchange rate is getting better at the moment.... keep an eye on it

Milarky

You can see a lot of useful information on this handy currency convertor from yahoo that I came across the other day.

http://finance.yahoo.com/currency

[Remembering that the 'spot' price isn't what you get when you buy currency, of course]

Here's the GBP vs USD: http://finance.yahoo.com/currency/convert?amt=1&from=GBP&to=USD&submit=Convert