Pound in biggest monthly fall against the dollar since 2016...

[wellyfish]

Drops are inflationary as far as we are concerned. Lots of things are traded in USD and we import a lot from the EU.

I agree, inflation can be imported.

What do you think happens to the exporters?

 

[ajohn]

What do you think happens to the exporters?

Hopefully they export more as the buyers costs are less as their currency is worth more but if needed import costs increase - manufacture for instance.

 

[wellyfish]

Hopefully they export more as the buyers costs are less as their currency is worth more but if needed import costs increase - manufacture for instance.

If buyer's costs aren't in £s then why would their costs be less?

As you know, when more £s are required to buy a $, things priced in $ obviously cost more £s... So, when prices increase, what generally happens?

 

[JP_]

In your opinion, what is the correct rate?

I don't understand the question.

It's tumbling towards a 50 year low. Do you think that's a good thing?

 

[wellyfish]

I don't understand the question.

It's tumbling towards a 50 year low. Do you think that's a good thing?

It's simple enough ... what, in your opinion, is the correct rate of exchange between $ and £?

Yeah, its always 'tumbling', 'free falling', 'soaring' etc. isn't it.

Do I think it's a good thing? Well, it's good for some, not so good for others.

 

[ajohn]

If buyer's costs aren't in £s then why would their costs be less?

I retired a while ago now rather early age wise. At least 10years before that the comany's price list was in euro.

 

[JP_]

It's simple enough ... what, in your opinion, is the correct rate of exchange between $ and £?

$2.76

 

[noseall]

$2.76

welly seems to have taken blithe indignation to a new level. It's a pity his posts amount to a crock of nowt.

 

[fillyboy]

I think I read pound is the weakest its been against the dollar for almost 40 years……

so despite a war neighbouring EU, pound is still doing way worse…..good old Brexit.

$2.76

welly seems to have taken blithe indignation to a new level. It's a pity his posts amount to a crock of nowt.

Does that mean American cars are 2.5 times more expensive in the UK than anywhere else?

 

[JP_]

Does that mean American cars are 2.5 times more expensive in the UK than anywhere else?

I don't think it means that, no.

 

[Notch7]

In your opinion, what is the correct rate?

The financial markets have lost confidence in the pound.

The correct level is where the markets consider the pound to be a fair risk.

 

[Notch7]

Does that mean American cars are 2.5 times more expensive in the UK than anywhere else

Who cares they are sh1t

 

[noseall]

Who cares they are sh1t

Correct.

 

[wellyfish]

welly seems to have taken blithe indignation to a new level. It's a pity his posts amount to a crock of nowt.

By all means point out what you think is incorrect about any of my posts.

 

[wellyfish]

The financial markets have lost confidence in the pound.

The correct level is where the markets consider the pound to be a fair risk.

If a country is going to let it's currency float against others the yes, they have to let the fx market decide the price.

However, there is plenty a competent government could do to insulate the nation from the inflationary effects (if there are any) of events like the recent fluctuation.