In June the GBP/USD exchange rate dropped as low as the 1.20 level after the Federal Reserve raised interest rates combined with the continuing impact of the Ukraine war on commodity prices.
The Bank of England has joined the global fight against inflation, but has raised rates by less than the US Federal Reserve.
So it seems the BoE’s gloomy economic forecasts has increased pressure on Sterling.
* This table compares FX rates & fees of selected FX specialists and banks for GBP to USD International Money Transfers. Providers must be well established, reputable and regulated in the UK by the FCA for the provision of payment services. We DO NOT compare every provider in the market. We may receive referral fees if you choose one of these providers however this will not affect the savings, exchange rates or fees you are charged by the provider.
Exchange rates available for foreign transfers and currency exchange always contain either a rate margin from the Latest GBP to USD Exchange Rate (shown above) or a transaction fee and often both!
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There are two important ways to save on Foreign Exchange, the first is minimising unnecessary or excessive costs and fees, and the other is to transact when the exchange rate is in your favour.
Reduce Excessive costs and fees
Generally speaking, if you are buying US dollar with Pound Sterling, then it's good for the GBP/USD exchange rate to be higher.
However working against you are the fees all foreign exchange providers charge for providing their service. These fees is usually contained within the exchange rate margin (or difference to the mid-rate).
The transaction margin you end up being charged can be considerably reduced by around a few percent (of total amount being exchanged) for
travel money and possibly over 5% to 6% when sending money.
The exact potential savings depends on the currencies being exchanged and the amount you are transferring and if you are willing to shop around.
Our real-time foreign transfer and travel money/cards comparison calculators make shopping around easy and help you calculate how much you can save.
Will the Pound Sterling rise against the US dollar?
It is almost impossible to predict what an exchange rate will do in the future, the best approach is to monitor the currency markets and transact when an exchange rate moves in your favour.
To help with this you can add GBP/USD to your BestExchangeRates My Rates Watchlist to track and benefit from currency movements.
Once you add a currency pair for tracking in your watchlist we can select to be notified daily for any UP▲DOWN▼HIGH▲LOW▼ alerts over a range of periods over the recent 90 days.