garyandelaine

Pound vs dollar

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    Hi all,

     

    Just put house on the market and wandering if anyone in the know could tell me what they think what will happen between the pound and the dollar in the next 6 months or so? I know you would need a crystal ball to predict it correctly but any input I would be gratefull of . regards Gary

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    Hi, I know how you feel. According to Hifx the exchange rate is at a 13 year low!!:arghh:

    We have sold our house (stc) and assuming our buyers don't pull out we will have all our money all ready to move, but I really don't want to change it at such a bad rate. We are thinking we may just have to keep it here in the UK until the rates get better, but then that means we will be stuck in rented for the medium to long term, which after having your own home is not really something I look forward to.

     

    I can only think that interest rates in the UK can't get any lower (seeing as they are at an historic low), so the only way is up. The problem is that in Australia they keep saying they may have to put their interest rates up soon, to stop the economy from overheating! However the UK economy seems to be doing worse than anywhere else with this recession, which isn't a good sign.

     

    My only feeling is that things can't get much worse, so it might be a case of waiting till they get better.

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    Guest soggy

    Hi,

    first I am certainly no expert, interest rates do effect currency exchange rates but other things do too, a big problem for the pound is the amount of public borrowing in the UK as well as the weak economy, the later may improve in the short to medium term and give you a better exchange rate the former may take a little longer, I can't see the pound getting back to $2.50 area anytime soon.

    A few years ago people got $3 to the pound these rates will proberly never return, not sure if $2.5 will, how long do you put buying a house on hold for? house prices are more likely to rise than the exchange rate in the short term ( I think ), this would could reduce the gains made by a improvement in the exchange rate.

    If it were me, I would rent for a year anyway and watch the exchange rates closely, there are advantages of renting, mainly you will be less likely to buy in an area you later find is not the place you want to live in.

     

    Simon:):)

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    Guest ben&sharon

    We just had to move our cash over, so feeling your pain - we managed to hit a 'peak' :err: in recent days, but stll nowhere near what we'd hoped for.

     

    We went with the same opinion as Soggy - house prices are forecast to rise here if anything, so we figured better to cut our losses and be in the housing market than out of it and find ourselves priced out in the future.

     

    Wish we'd had a crystal ball too - we were looking at $2.40 when we came for our reccie last September.

     

    And as for what's going to happen to the rates - who can tell? The Aussie economy is reputedly one of the strongest in the developed world at the moment - SA saw around 5% growth last year; against the trend. You may have to swallow it, lower your expectations a little and think to the longer term.

     

    Good luck with the rest of your move - and don't let it put you off!

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    Hi,

     

    A few years ago people got $4 or $5 to the pound these rates will proberly never return,nSimon:):)

    I've been watching the rates for 20 years now, and have never seen 4 or 5 dollars to the pound. It once hit 3 briefly, but it has never been under 2 as it is now, as far as I recall. Compared to the more traditional $2.40 to the pound, the current rate means that whatever you transfer is worth a fifth less now than in better times. Ouch.

    As for renting until the rate improves - step outside the box for a while, you might enjoy it!

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    Guest soggy
    I've been watching the rates for 20 years now, and have never seen 4 or 5 dollars to the pound. It once hit 3 briefly, but it has never been under 2 as it is now, as far as I recall. Compared to the more traditional $2.40 to the pound, the current rate means that whatever you transfer is worth a fifth less now than in better times. Ouch.

    As for renting until the rate improves - step outside the box for a while, you might enjoy it!

     

    I'm sure your right, my memory is letting me down, I think it's the NZ dollar i'm thinking of I looked at migrating way back in 2001, but did not have the points to get anywhere then, the pound did reach $3 dollars then and spent a while at $2.8+.

     

    Simon

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