It’s the best time for British holidaymakers travelling to the USA
Pound stirling remains at best level against the Dollar since September(Image: PA)
The Pound is still trading at $1.35 today, its best level since September, as experts urged Brits travelling to the US to buy their Dollars now.
Sterling has been at $1.35 since December 23rd – its strongest position against the Dollar since mid-October, Newspage reports.
It comes after predictions that interest rates may be cut faster in the US than the UK next year.
The US Federal Reserve is expected to deliver two more rate cuts next year – putting the Dollar under pressure.
The Bank of England cut interest rates to 3.75% earlier this month but inflation is still well above the 2% target at 3.2%.
The vote of five to four in favour of the cut showed the decision was on a knife-edge, meaning that rate cuts may be slower next year in the UK than in the US.
Tony Redondo, Founder at Newquay-based Cosmos Currency Exchange, said Brits travelling to the US “should buy their Dollars now”.
He added: “The Pound is trading at its strongest against the Dollar since September, offering a welcome opportunity for USD buyers.
“The Dollar has weakened after US inflation data showed a sharper-than-expected slowdown, raising expectations of more aggressive Federal Reserve rate cuts in 2026.
“Markets have reacted swiftly, driving the current Dollar softness. However, this strength in Sterling is built mainly on Dollar weakness, not UK economic improvement, so waiting until January could be risky.
“If the Dollar rebounds or sentiment shifts, these favourable rates may vanish.
“Holidaymakers heading to the US, property buyers and importers paying in Dollars all stand to benefit, while exporters and Dollar sellers may prefer to wait for the pressure to return to the Pound as the UK outlook dims.”
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