The pound traded in a wide range over the past month, as concerns that the UK may face a ‘winter of discontent’ were offset by rising speculation that the Bank of England (BoE) could start hiking interest rates by the end of the year.
Make the most of your pound to US dollar currency transfer
The pound (£) is one of world’s highest value currencies, while the US dollar ($) is the world’s most commonly traded. People use the GBP/USD exchange rate to send money to the US for many reasons, like paying for property purchases, transferring their pension payments, giving money to friends and family and funding an expat lifestyle.
Key pound to US dollar exchange rate facts
In the wake of the financial crisis, the GBP/USD currency pairing experienced notable volatility before levelling out and trading within a fairly stable range. That all ended in 2016 when the UK’s decision to Brexit caused the pound to plummet against the US dollar.
Don’t forget! These are interbank exchange rates.
- The GBP/USD exchange rate fell sharply during the financial crisis, bottoming out at US$1.3612 when Lehman Brothers collapsed.
- Since the financial crisis the highest the pound to US dollar exchange rate has reached is US$1.7160; before the crash £1 was worth over $2.
- Following the UK referendum on the nation’s membership of the European Union, the pound crashed to a 31-year low against the US dollar of US$1.2023.
Pound and US dollar currency information
The pound is also known as ‘Sterling’, while the US dollar is often called the ‘Buck’ or ‘Greenback’. The pound to US dollar exchange rate often goes by the nickname ‘Cable’.
USD is one of the world’s most stable currencies, so its value often changes depending upon how uncertain the market feels about global political or economic factors. Meanwhile, GBP is very sensitive to domestic political events and economic data. These variables all affect the amount you receive when making a pound to US dollar currency transfer.
GBP/USD exchange rate movement
Political and economic volatility in the UK and US can have a significant impact on the amount of USD you receive when sending GBP overseas.
Specific issues, like the UK’s Brexit negotiations with the European Union and the Federal Reserve’s attitude to interest rates have had a substantial impact on pound and US dollar exchange rates in recent years.
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The pound traded in a wide range on Wednesday, as a weaker-than-expected inflation reading raised questions over whether the Bank of England (BoE) will hike interest rates next month.