US Dollar heading for a three year high

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The US dollar exchange rate has been slowly climbing over the last 30 days. In fact it started its ascent back in September 2020. On 22nd September we recorded a best retail exchange rate of 1.27 and it hasn’t dropped below that since.

Currently we are seeing the best rates for USD around 1.40 and it hasn’t been that high since March 27th 2018, nearly 3 years ago.

The reason the exchange rate against GBP Sterling is good is because the dollar is losing value in it’s home country. At the end of last year USD was at a two-and-a-half year low and some analysts in America expect the weakness to continue for a while. This is good news for anyone in the UK who is planning to travel to a country that has the USD as an official currency – although international travel is another story at the moment!

Recent history

In recent times the best USD exchange rates were to be found before 2016. In the year between September 24th 2013 – 2104 the USD/GBP rate never dropped below 1.60. In fact, our records show that the rate never dropped below 1.4 from at least 2011 until it fell off a cliff in late 2016.  This corresponded with the new Trump administration although that may not be the whole reason. Since then, apart from a 3 month spell in 2018 the rate stayed below 1.40.

Current rates

Whatever the exchange rates are for any currency we will always show you the best live deals and our currency pages refresh every few minutes. At the time of writing the best deal for USD was being offered by Moneybee at a shade under 1.40. Followed closely behind by Travel FX and Covent Garden FX.

USD-exchange-rate-comparison-table

Future

As always it is very difficult to predict the movement of currencies and at compareholidaymoney we would never try! There are so many factors at play and they are constantly changing. It’s sometimes useful to look at trends but for most of us we just want to know how much travel money we might get when we go away and we can certainly help with that. Sometimes we get asked if it’s good to buy currency when the exchange rate is high. If your interested in the answer we covered that in a recent article on the euro.

No doubt the lifting of restrictions and the return of international travel will fuel demand especially for the most popular currencies. Whether or not this has an effect on exchange rates themselves remains to be seen. The economics and political situation of a particular country are more likely to be factors. If you’re looking forward to a foreign holiday this year, or perhaps you’ve already booked? Don’t forget we will always show you the best current exchange rates and make it easy for you to order.

Posted by Graham Morley

Graham Morley

Graham is the Business Development Manager for Compare Holiday Money.

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