USD-sterling exchange rate

[mawilson 2,133]

In the next couple of days, policy makers are expected to increase the federal funds

rate by a quarter percent (to 4.75%).

4.75% is higher than the 4.5% level of base rates in Britain -- a rare rise in US interest

rates above Britain’s.

Historically, such moves have always triggered a sell-off in sterling, as investors moved

to place their funds borrowed in countries with lower rates in those with higher rates.

[ChristinaM 0]

I only have twenty quid sterling, so it's no biggie for me!

Thanks for the heads-up though.

[ladybird216 2]

That should make it nice and cheap for us visiting the UK in May Thanks for the tip.

Jen

[mawilson 2,133]

Christina -- LOL @ 20 quid

ladybird -- I hope so too

[Reba 2]

yeah, that'll be nice, we're going to Scotland in May for a wedding

[Jaylen Brit 0]

bums - does me no good - I get my house settlement in UK £ sometime in the next couple of months - so no chance to 'dump it' til then (but even then I will prolly keep half of it in the UK - don't like to have all my eggs in the one basket )

[TracyTN 237]

Brilliant, just in time for my August trip to Blighty!

[brtlmj 0]

bums - does me no good - I get my house settlement in UK £ sometime in the next couple of months - so no chance to 'dump it' til then

AFAIK you still can do it... that would be called a "forward contract".

In the next couple of days, policy makers are expected to increase the federal funds

rate by a quarter percent (to 4.75%).

I am NOT an expert, but I am pretty sure that any expected change would already be included in the USD-GBP exchange rate...

Bartek