The dollar this week fell to a 26 year low versus the pound sterling, according to leading UK foreign exchange company Moneycorp . The dollar has been hovering at just over $2 in recent weeks and has gone as high as $2.05.
For those who are looking to invest in property abroad, particularly in the United States, this means that it is a great time to get excellent value. Some Caribbean nations and Dubai have pegged their currency to the dollar, so for these select countries deals can also be had. The exchange rate, combined with a slumping market, makes it possible to get some great deals on property across the Atlantic. This is true particularly in traditional hot spots such as Florida and the Caribbean, while newcomer Dubai offers lots of options for the investor, as a recent article in the Daily Mail noted (www.dailymail.com.uk ).
The pound is not performing as well against other major currencies according to Moneycorp, leading to an increasingly valuable US and Caribbean market for British investors. For other currencies this week, the pound was buying 1.45 Euros, 250 Japanese Yen and 7.6 Saudi Riyals. Note that rates change daily, so for up to the minute prices check Moneycorp’s website.
To put the current exchange rate into perspective, 20 years ago the pound could buy approximately 1.6 US Dollars. Fifteen years ago the exchange rate got as high as $2 in September of 1992, but for most of the year it was in the $1.7-$1.9 range. Ten years ago it was hovering around $1.6, while five years ago the range was in the $1.4 – $1.6. Over the past year the pound has ranged from $1.82 to its current high. The stability in the rate should continue at least for the short term, according to Moneycorp:
“Unless and until the Dollar can deliver some evidence to persuade them otherwise, investors will remain inclined to steer away from it and that ought to mean further gains for Sterling this week.”
For those investors who are looking to take advantage of these historic rates, Moneycorp can help set up currency transfers and mortgage payments. With many overseas offices, they can even work with a local bank to get the transfers when and where you need them. It’s a good time to be looking at some select locations for overseas real estate investment.
When buying property abroad or making regular payments abroad currency specialists can save you money and prevent you from being a victim to ever changing FX fluctuations.
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