Pound Dollar Exchange Rate

A bit of both, together with a few other things, especially the US budget deficeit and trade defeicit.

and what are the chances of it remaining high.

Anyone who really knows the answer to that can make a fortune.

IMO the US dollar has further to fall against the basket of International currencies but also the pound will fall, but slower.

I would guess the pound/dollar will end up at about 2.2

But I am talking over the next few years not the next few weeks. And of course I might be totally wrong.

I am making fairly regular payments to Thailand that seems to track the dollar closely so it is handy to know what is likely to happen over trhe next few months. Recently it has been going down but is now on the way up with the dollar.

kevin

I don't think it is anything to do with the troubles in the Middle East, as that would probably affect the $ and £ pretty much equally.

I think the factors are related to the relative interest rates between the two currencies, higher inflation in the US and the high level of government debt in the US.

I see that today it has gone to about 1.91 and there was talk on radio

Kevin

Which bodes very well for my holiday in Florida in a few months !!!!

The Fed make their interest rate announcement this week, so if they make their 18th rate rise in a row, that might rebalance the exchange rate marginally. Although some people seem to think the Fed will hold rates.