Kenwood Travel Blog

Falling Pound

As some of you may have noticed, the pound has continued to fall against the dollar and there are many reasons for this. A report has showed house prices unexpectedly dropped, which has added to signs that the U.K.’s economic recovery is stumbling. There are also concerns that Europe’s debt crisis will wreck the recovery in the U.K.

Sterling dropped to a seven-month low against the dollar and many fear that the nation’s economy is seriously losing its drive. The pound also depreciated as the Bank of England said the central bank may have to increase its bond-purchase program, a.k.a quantitative easing.

The stats do not make for good reading. The pound fell 0.4% to $1.5762 yesterday in London; it’s weakest level since January 25th. This is all at a time when the U.K economy is supposed to be in recovery.

What does this mean for people travelling abroad?

For every £1000 exchanged as spending money for your USA holiday, you are now receiving around $100 less than you would have a year ago. In addition, your USA accommodation, which Kenwood Travel must pay for in Dollars, is comparatively more expensive. A holiday which costs Kenwood Travel $5000 would have cost £3030 now costs £3185.

Many other hotels, in destinations such as Indian Ocean and Caribbean also invoice in Dollars. This means that your Indian Ocean and Caribbean holidays will also be comparatively more expensive. However, it’s not all bad! Your holiday to Cuba will not be more expensive as they don’t invoice in Dollars.

For live, up to date Forex (Foreign Exchange) prices, click here:
http://www.taxfreegold.co.uk/dollarsterlingexchangerateprices.html