$ to get better ?

[Guest]

USA is putting up its interest rates. Will this help improve the $ rate from our point of view?

[gforce_iom]

Opposite effect usually... higher interest rates in other currencies usually means worse X-r for lower interest currencies.

[birdiesX4]

Just seen it on the news and didn't really know what that would mean for us. Did say it may prompt a rise in interest rates here so not sure if that will counteract any affect?

[Guest]

Typical! Will it never crawl above 1:45 in this century?

[ERICSMUM]

In theory money moves from low interest rates to higher. In theory this then makes the currency with the higher interest rate worth more. So the USD-GBP exchange rate would fall.

That's the theory but there's such a lot going on in the world at the mo - who knows if 'normal' theory will apply ?

[hornetgirl]

Yes, it apparently makes the dollar a more desirable currency, so more expensive for us to buy. It may have already been factored in though as today's announcement was hardly a well kept secret.

[Orlando 2004]

Well it better improve before August as I've just booked our flights!

[Guest]

Oh! For the days of 2008 when we got 2:08 to the £. That's when we bought in to DVC.

[katie]

I'm hedging my bets & bought some dollars yesterday. Finance reports which I read are reporting that we will slowly see the dollar becoming more expensive. It's all a lottery really.

Katie

[Saratoska]

Originally Posted by geoffa

Oh! For the days of 2008 when we got 2:08 to the £. That's when we bought in to DVC.

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Same here Geoffa