In the next couple of days, policy makers are expected to increase the federal funds
rate by a quarter percent (to 4.75%).

4.75% is higher than the 4.5% level of base rates in Britain -- a rare rise in US interest
rates above Britain’s.

Historically, such moves have always triggered a sell-off in sterling, as investors moved
to place their funds borrowed in countries with lower rates in those with higher rates.

I only have twenty quid sterling, so it's no biggie for me!

Thanks for the heads-up though.

That should make it nice and cheap for us visiting the UK in May Thanks for the tip.

Jen

Christina -- LOL @ 20 quid

ladybird -- I hope so too

yeah, that'll be nice, we're going to Scotland in May for a wedding

bums - does me no good - I get my house settlement in UK £ sometime in the next couple of months - so no chance to 'dump it' til then (but even then I will prolly keep half of it in the UK - don't like to have all my eggs in the one basket )

Brilliant, just in time for my August trip to Blighty!

AFAIK you still can do it... that would be called a "forward contract".





I am NOT an expert, but I am pretty sure that any expected change would already be included in the USD-GBP exchange rate...

Bartek