What’s Happening To Sterling/Euro Exchange Rates... And Why?
This week the Bank of England has highlighted that overseas investors may choose to reassess their willingness or ability to purchase sterling assets and thereby finance the UK trade deficit.
This has led them to conclude that "As a result, the long-run sustainable real sterling exchange rate... may have fallen."
Currency markets reacted suddenly to this statement. According to an article in the Express, the Post Office have been offering just 1.03 euros to the pound, Gatwick airport just 1.02 euros to the pound and Birmingham and Luton airports a poultry 98 cents and 99 cents respectively to the pound.
Here at FairFX our rates have also been dragged down – but not nearly as much. Today we’re offering 1.10 euros to the pound.
So in conclusion euro rates have fallen a little over the past couple of days – but they’ve also rebounded a little. Just be aware that at times when currencies fluctuate that some companies will feel that they can get away with giving consumers a worse deal. Keep your eye on the rate when you’re ordering currency at the moment.
Wednesday 23 September 2009, 01:00pm