Posted by Allison on 21 September 2010, 17:01
If you have been reading the financial and currency news lately you will know that the British pound has been struggling to keep up with many other currencies. Its value has dropped in many places and that’s why we are going to take a closer look at the head to head between the British pound and three other currencies this month.
The first one to check out is the Hong Kong dollar. At the end of July the pound was claiming 12.118 so anything better than this would be an improvement for August.
Things started off well as the pound managed to climb to 12.376 by the 4th of the month. However two days later it had slipped back on the currency converter, ending up with a rate of 12.321 in the process. Was this a sign of things to come or just a bad end to the week? After all the pound was still up on the amount it had been worth at the start of the month.
The 9th saw a much better result as the pound managed to claim an exchange rate of 12.388. However things didn’t stay on the positive side as the pound fell to 12.207 on the very next day. A slight increase on the 11th gave way to a drop in fortunes on the 12th, as the pound dropped back to 12.106. Was this a sign that the fortunes of the pound were changing and the Hong Kong dollar was taking charge?
The week ended in slightly better shape for the pound on 12.112, but there was a long way to go yet before the end of the month was in sight. Indeed the end of that week showed that there was a lot to do before we could hope to feel more positive. The final rate for the week was 12.064, illustrating that the Hong Kong dollar was starting to put more pressure on the pound.
But the most shocking result of all was yet to come. The pound reached a new low as the following week got started, reaching 11.985 in the process. Was there still worse news to come after this?
The pound rallied to 12.076 the very next day, as if shocked into that position by the lower rate from the day before. That week ended on 12.052 but there was still two trading days left in the month as a whole, and unfortunately the last one gave us a rate of 11.960 to close on.
It was clearly not a good time for the British pound at the moment. Even though it had minor moments of glory during the month, they were minor indeed and the Hong Kong dollar was clearly in the better position throughout.
All we can do is to hope that the British pound can pick itself up and achieve something better in the time to come. Will it be next month – or will we have longer to wait than that?