How is the Pound Doing Against the Single Currency?
Posted by Allison on 16 May 2011, 11:40
This is always a curious evaluation to make because you just don’t know whether the pound will be able to get the better of the Euro anytime soon. At the end of March the British pound had a rate of 1.1316 in place, so how would it fare during April? Would it be able to better that at all or was it going to suffer and be lower than that by the time the month was over?
The first bit of good news was on the 5th of the month, when it reached 1.1456. But the very next day it was back down into the 1.13 range again, so the little bit of joy we had from it was soon over with.
The same happened on the 7th with a rate of 1.1416 and this only lasted a day as well. We couldn’t have known it then but as it turned out the British pound would not see another exchange rate of 1.14 or above on the currency converter throughout the rest of April. Instead we would have very different territory to go into.
We had a shock to the system a few short days later as the pound dipped to 1.1255. This was not good news – we were hoping that we could take advantage and bring higher exchange rates into play this month. But it looked as though this would be no more than a pipe dream, because it was fast turning into a nightmare.
That particular week ended on 1.1314 but there was every hope that we could keep it up. The next best rate was 1.1396 very soon into the new week, but again we simply couldn’t keep up the higher rates and we soon slipped back into weaker ones again.
In fact the territory we were about to slip into was going to be worse still. Even though at this point we still had a few days to go until the end of the month, we didn’t realise how much lower the exchange rate would go. The disappointing answer was 1.1214.