Currency and Exchange Rate News – December 8th

The Pound improved over the weekend and on Monday morning, most notably against the US Dollar after very weak jobless data out of the States on Friday.

Exchange rates which are pegged to the Dollar have also improved, for example the best transfer rate to Dubai in Dirhams.

The Pound gained a couple of cents against the Dollar, and a similar amount against the Euro, making sending money overseas slightly cheaper for those of you buying overseas property.

The rally was halted, however, by UK PPI data out this morning. The Producer Price Index, which shows factory costs, fell in November as the cost of oil and other base products has come down in recent weeks. The figures, which showed a 0.7% drop in production costs, are likely to reinforce the view that inflation in the UK is not a problem, and therefore that UK interest rate cuts are sustainable.

Lower interest rates usually mean a weaker Pound (which is one of the main reasons for the Pound’s current weakness), so sterling fell back when the figures were announced.

If you need to buy or sell foreign currency, make sure you are in touch with a specialist FX company who can help you save time and money.