ok - dopey question re: exchange rates

[lisagirlyUK]

Hi,
I was just chatting to my mum about this as I cant work it out. She wants to order her travellers cheques now before the rate drops any further. She thinks that in the run up to holiday season, as all the UK ers buy their travellers cheques, this makes the pound weaker to the dollar - where as I though it would make it stronger against the dollar.

Then again - it might not influence it all!!!

Can anyone offer any advice?

Thanks

Lisa

 

[Daniel&family]

Lisa
In my opinion, holiday makers make no difference to exchange rates.
It's interest rates, inflation, the stength of the respective ecconomies etc and the opinion of the traders on the city markets that effect exchange rates.
In theory though your Mother would be correct, since if you had more buyers of $'s than sellers the value of the $ would increase so you could buy less for the£.
As for which way it will go your guess is as good as anyone's.

 

[GerryH]

Lisa - the amount of dollars we holidaymakers buy is just a blip on the money market radar. Holiday periods don't have any effect on the rate. It's all down to the financial markets and economic trends.

 

[yourwelcome]

Lisa,

If it is any consolation to you the rate at the moment is the best I have known since I have been going(1996) It wont do you any harm to buy now. Even if it rises by a couple of cents the overall loss will not be alot.

I think you could loose more than you could gain.

Enjoy!!!!!!!!!!

regards

Brian

 

[lesleybax]

i'm not sure weather to buy$ now or closer to hoilday (july) can any one tell of a site that gives upto date exchange rates from different places