Great news for anybody looking to travel to the USA or Caribbean! The dollar weakened against the pound yesterday and today as the U.S. Federal Reserve confirmed its plan to maintain interest rates at an ultra-low level, extending the duration of low-level interest rates until late 2014. This date is a lot later than the markets had expected and the dollar rate reflected this accordingly. The announcement was made after the U.S. Federal Reserve’s two-day policy meeting and the pound rallied on the back of other news earlier in the day including strong German economic data.
For the last few months the dollar has been languishing at around the 1.54 mark, meaning that for every £1000 exchanged you will be receiving £1540. However, after the most recent news, the exchange rate has become far more attractive for those of us exchanging pounds, as the Dollar rate has climbed to 1.57 at the time of writting. This means that for every £1000 exchanged, you will be receiving £1570.
This is not just great news for you in terms of holiday money, because we have contracts with our suppliers in dollars, your holidays are now cheaper for us to book and we are passing the savings on to you! For example a $10,000 holiday booked today will cost us £6369 at the current rate. This time last moth it would have cost us £6535, thats a saving of almost £170!