In case anyone hasn't noticed the GBP is now selling for $1.15. That's down abot 18 cents in just a couple of weeks.
I guess I won't be in a rush to cancel my July refundable bookings just yet. My deposits were made in ££ worth $1.30.
This is why:
"Soaring demand for the dollar is exacerbating dislocations in markets world-wide, sending other currencies tumbling and pressuring those that need the U.S. currency to pay debts and meet other obligations"
Source: Wall Street Journal
When there is massive financial panic in the world, the dollar is seen as a safe haven. Indebted places like Argentina also like dollars more than Argentine pesos.
Another reason is probably that there have been some signs recently that the UK might go for a no deal Brexit.
The main reason is the international flight to the dollar which often happens in uncertain economic times. There is uncertainty about how the U.K. is going to fund the ever expanding financial assistance from the government that Coronavirus has caused.
Oil is denominated in dollars and look how far that price has slid, there’s a demand for dollars which hurts the pound.
Could anyone explain why the GBP is tanking against the Euro as well though?
Wow! I remember when an English penny was worth an American penny (GBP = $2.40)
Of course, at that time you could buy a VW bug for $2,000. And I could wear a size7 miniskirt.
And remember what that one pence coin looked like? They were huge.
Two weeks ago the € was 1.15, now it’s 1.07. If the border were still open, visiting Canada 🇨🇦 would be a dream trip! The Loony is now below $.70 USD.
Lola, a friend who was an amateur magician used the 1p coins for practice -- similar in size to USD $0.50 coin, but much cheaper if they roll into the street.
Although the pound was $2.40 in those days, the prices were much lower after conversion. In 1967 Inbought a beautiful and stylish wool coat in Carnaby Street for the equivalent of $19 US. And dinner at Simpson's in the Strand was around $3.50, for the serving cart with prime rib sliced at our table, Yorkshire pudding, etc.
I should look and see what the price equivalents are for these things today.