Posted by Allison on 10 December 2010, 13:08
Quite often in this column we focus on how the British pound is performing alongside many of the well known world currencies. In choosing currencies such as the US dollar, the Hong Kong dollar and the Euro to compare it to, we learn how the pound is able to stand up against the biggest currencies in the world.
But most of us realise that there are plenty of other currencies in the world as well, and it is equally as important to understand how the pound is performing against those on the currency converter. So this time we are going to choose the Cuban peso to go head to head with the British pound, so we can see whether the British pound is the strongest one of the two – or whether the peso has something to show it about strength.
Let’s head back to the end of October to see whether the British pound finished that month on a strong footing. At that point the pound was worth 1.4771 Cuban pesos, so let’s use this as a benchmark for the month of November, to see whether the rate would go higher or lower from that point on.
The first week of November was certainly interesting since the pound rose steadily and managed to finish on a higher note virtually every day. Friday’s closing rate certainly gave us something to be grateful for going into the weekend, as the pound finished on 1.5021.
But where would it go from here on in? Would the pound be on a good track for the whole of the rest of the month, or would the Cuban peso start pushing back and make the pound drop some of those early gains?
The closing exchange rate for Monday evening saw the Cuban peso do just that, and the pound fell back a little to 1.4936. It was only a fairly small loss but it did make us sit up and take notice – particularly as it would not be the only loss it experienced that week. All in all the difference at the end of the week was not huge though, as it finished with a closing rate of 1.4925.
We were halfway through the month now and just one week later the pound was showing signs of struggling. The peso had fought back and managed to get the pound down to a rate of 1.4801. Indeed the next week was really a masterclass in showing how the Cuban peso was able to take control of the pound and achieve a much changed rate too. By the end of it the pound was only claiming 1.4496.
The month was nearly over now and we were thinking that the pound had just about reached rock bottom. But as it turned out there was a little further still to fall. The pound finally closed out the month on 1.4367 against the Cuban peso, so it was far from a successful November here.