The decline means the GBP/USD cross has dropped almost 2.5 per cent in the last week, as the pound continues to be weighed down by talk of Brexit, while the dollar is strengthening as investors focus on the potential interest rate hike in the U.S.
For the best GBP/USD exchange rates click here.
Although the drop is not ideal for those of you looking at purchasing U.S. dollars, it will come as welcome news for those who are looking to sell and move your funds back into sterling.
If we look at the move in monetary terms, converting $300,000 back into pounds will today achieve you around £6000.00 more than it did on the 24th February.
GBP/USD one week graph
Why is the pound falling?
As I mentioned above, talk of Brexit is still dragging the pound down. With so much uncertainty surrounding Article 50, the two year negotiation period and the future of the UK economy, investors are wary about moving funds into the country.
Data is also starting to suggest the UK economy is slowing. Since the referendum result Britain's economy has been showing its resilient side. However, following a raft of weaker eco-stats over the past couple of weeks, there are signs consumers and businesses are becoming increasing concerned.
When you add into the mix a potential rate hike for the Federal Reserve this month (which is likely to increase the dollar's value further), we easily see the GBP/USD cross test the $1.20 barrier in the coming weeks.
Are you looking to buy or sell dollars?
If you have a requirement to buy or sell dollars in the weeks or months and are worried about the impact Brexit or the Federal Reserve rate hike could have on your transfer, contact me today for a free, no-obligation currency consultation.
For more information about how I can help or to find out what rate of exchange I can offer complete the contact form by clicking on the link below.
