Pound to US Dollar exchange rates have continued to fall and sit close to record highs against the Pound.
With the on-going US/China trade war we have seen a significant flight to safety. In times of uncertainty the US dollar will often benefit. With it being the global currency, with many commodities priced in dollars, investors will often buy US dollars. This is something we are currently seeing.
In contrast we have seen other ‘riskier’ currencies fall quite heavily in value. For example the South African Rand (ZAR) and Australian Dollar (AUD) are close to record lows against the US dollar. They have also seen some significant losses against the Pound. This continued demand for safer currencies is likely to keep Pound to US Dollar exchange rates on the back foot.
Why is this ‘flight to safety’ happening?
Along with the on-going US/China tensions there have been other financial shocks which are spooking investors. We of course have the continued Brexit debacle but US stock markets have fallen sharply following a number of global concerns with protests in Hong Kong to elections in Argentina adding to deepening worries about the US/China trade war.
These tensions will ease at some point and therefore it is not common for these significant swings to be short lived. A casing point is the USD/AUD exchange rate. Its has moved moved nearly 5% since mid-July. This is not a common movement and shows that if you are in a position to act there are still some great buying opportunities out there.
Looking for the best Pound to US Dollar exchange rates?
If you need to convert a large sum, to purchase overseas for example, then get in touch to see how we can help. We offer a free consultation over the phone to discuss your requirements and explain the various options you can consider. We can also provide you with a free quote for you to compare with your bank or existing broker. Our rates are up to 5% better than available elsewhere, so you could save thousands.