Posted by Allison on 14 October 2011, 14:15
The Icelandic currency isn’t one we typically look at very often. But the pattern during September was interesting enough to warrant a closer look on the currency converter to see how the exchange rate varied from the starting point of 185.060.
The first notable result for the pound was on the 5th, when it picked up to 186.241. But since it dropped back down to 184.481 the very next day, this did not prove to be worthy of celebration. However there was more good news on the heels of this as the pound finished off that week on 186.133.
Most people realise that the currency markets can change incredibly quickly. Indeed the space of just a few hours can sometimes have a marked effect on the state of the markets. In this case the situation between the British pound and the Icelandic krona was very different just one week after that good result. On the 17th September the exchange rate had dropped to 182.990. This was a marked difference and it made us wonder whether the rest of the month would see better results for the krona rather than the pound.
The next week started with a slightly better result of 183.570, but it didn’t last long. Clearly the krona had the upper hand now, and it drove the British pound back to a lower exchange rate as a result. This week ended with the pound claiming an exchange rate of 182.044, which was lower than we had started the month with. It was looking less likely that we could reclaim the rates we had back on the 1st September.
However if this was now a case of damage limitation, we did at least manage to do a rather good job in this sense. By the time the month came to an end, we managed to finish on 184.045. This was still lower than the original rate we started out with, but at least it wasn’t as low as it could have been. We should be grateful for the clawback we eventually performed.