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View Full Version : British Pound Breaks Through $2 for First Time in Nearly 15 Years


Unspeaked
Apr 18, 2007, 09:54 AM
Here's the story, from ABC News (though almost all the news outlets are reporting it):


http://abcnews.go.com/Business/wireStory?id=3049319


Kinda interestering. Bet it won't change Mac prices over there, though...!

bartelby
Apr 18, 2007, 09:57 AM
Here's the story, from ABC News (though almost all the news outlets are reporting it):


http://abcnews.go.com/Business/wireStory?id=3049319


Kinda interestering. Bet it won't change Mac prices over there, though...!

It's the highest it's been for 26 years (http://news.bbc.co.uk/1/hi/business/6566715.stm) not 15

bigandy
Apr 18, 2007, 09:58 AM
I hope it stays like this until I can make it over to the states in the summer. I'll buy another Mac in NYC and save myself several £££'s.

Earlier today, it hit another high (http://news.bbc.co.uk/1/hi/business/6566715.stm):

Pound reaches 26-year dollar high
Sterling has risen to its highest level against the dollar since 1981, breaking through the $2.010 mark.


edit: damnit bartelby, stop posting before me :p

killmoms
Apr 18, 2007, 09:58 AM
It's official: the dollar is in the *******. :( Le sigh.

Oh well, at least I can take comfort in the fact that, for all the strength of their currency, they're still paying way too much for Apple products.

That does make me feel better. :)

Unspeaked
Apr 18, 2007, 09:59 AM
It's the highest it's been for 26 years (http://news.bbc.co.uk/1/hi/business/6566715.stm) not 15

Yes, but as the headline says, it's the first time it's broken through the $2 mark in 15 years...

Benjamin
Apr 18, 2007, 09:59 AM
and additional thread about it. http://forums.macrumors.com/showthread.php?t=297291

bartelby
Apr 18, 2007, 10:01 AM
Yes, but as the headline says, it's the first time it's broken through the $2 mark in 15 years...

Does it?:o
Sorry about that. I just thought some American news station was trying to soften the blow.;)

Queso
Apr 18, 2007, 10:02 AM
You do realise even the poorest of us now earn more than you, right? :D

bartelby
Apr 18, 2007, 10:04 AM
You do realise even the poorest of us now earn more than you, right? :D

You mean even I'm rich?!?:eek:

Unspeaked
Apr 18, 2007, 10:04 AM
Does it?:o
Sorry about that. I just thought some American news station was trying to soften the blow.;)

This is one blow that would be very difficult to soften - especially for anyone who'd planned a UK holiday in the next few months!

;)

Queso
Apr 18, 2007, 10:06 AM
You mean even I'm rich?!?:eek:
Only in US$ and all the other worthless currencies out there :p

EDIT: Actually that smiley should be a :( You should be rich.

bartelby
Apr 18, 2007, 10:11 AM
Only in US$ and all the other worthless currencies out there :p

I've got a small stack of poopy currencies. Dollars, Czech Koruna, Slovakian Koruna and Turkish Lira.

im_to_hyper
Apr 18, 2007, 10:13 AM
Oh well, I guess I won't be going to London like I originally planned. And this sucks, too... especially since I allocated $500 to spend while over there. That only gives me HALF of what i wanted. argh.

Queso
Apr 18, 2007, 10:13 AM
I've got a small stack of poopy currencies. Dollars, Czech Koruna, Slovakian Koruna and Turkish Lira.
So which one will you be lighting your fat rich man's Cuban cigars with?

Oh well, I guess I won't be going to London like I originally planned. And this sucks, too... especially since I allocated $500 to spend while over there. That only gives me HALF of what i wanted. argh.
£250 won't get you at all far in London I'm afraid. Unless you mean London, Arkansas. There it will buy you half the town, trailer parks and all :)

Unspeaked
Apr 18, 2007, 10:28 AM
£250 won't get you at all far in London I'm afraid. Unless you mean London, Arkansas. There it will buy you half the town, trailer parks and all :)

I don't know, I figure he could pick up a week's pass on the underground, a daily meal at McDonald's, a small daily snack from Tesco and a train ride to and from the airport and STILL have about £75 left over to spend on stuff.

If one sticks to the free museums, it's workable.

Though for the same amount, you could get a flight and hotel to Las Vegas, plus a week's worth of excellent meals and some fun nights out. Oh, and gambling.

Hmm, have you considered Vegas??

:D

Cromulent
Apr 18, 2007, 10:32 AM
Oh well, I guess I won't be going to London like I originally planned. And this sucks, too... especially since I allocated $500 to spend while over there. That only gives me HALF of what i wanted. argh.

£250 for a week in London?! Christ, I can quite easily spend £120 on one night out in London, and that is going home to sleep. God knows what it would be with hotel prices on top of that.

Edit : Seems I imagined you saying you were visiting for a week, oh well the point is the same :).

Unspeaked
Apr 18, 2007, 11:06 AM
250 for a week in London?! Christ, I can quite easily spend 120 on one night out in London, and that is going home to sleep. God knows what it would be with hotel prices on top of that.

Edit : Seems I imagined you saying you were visiting for a week, oh well the point is the same :).

To be fair, he does say that's what he set aside to SPEND, so in my scenario up above, I assumed the airline ticket and hotel - at least - were not included in that figure.

Now, if $500 is purely play money, and it doesn't factor in travel, hotel OR meals, then I think it's quite doable, especially with all the free things one can do in London in the summer...

dmw007
Apr 18, 2007, 01:09 PM
It's official: the dollar is in the *******. :( Le sigh.


Yes, this sadly seems to be the case. > $

Mr. G4
Apr 18, 2007, 01:27 PM
That is a good news for the US economie.

More visitors to the US, more export of American good since they are cheaper now.

Lets look at the bright side :D

Queso
Apr 18, 2007, 01:55 PM
Yes, this sadly seems to be the case. £ > $
Apart from one brief point during the Thatcher years when the two currencies hit equality during a Tokyo trading session, that's always been the case :)

QuarterSwede
Apr 18, 2007, 02:07 PM
I wonder if this has to do with the UK not giving in to the Euro.

Queso
Apr 18, 2007, 02:25 PM
I wonder if this has to do with the UK not giving in to the Euro.
This is due to an incredibly weak dollar rather than a strong pound. The value of the pound is pretty stable against the rest of the major currencies, including the Euro. Major central banks have been dumping their dollar reserves, which says a lot about where they view the American economy as heading.

Fasten your seat belts. I think we're all in for a bumpy ride over the next few years.

iGav
Apr 18, 2007, 02:30 PM
Oh well, I guess I won't be going to London like I originally planned. And this sucks, too... especially since I allocated $500 to spend while over there. That only gives me HALF of what i wanted. argh.

When exactly did you plan your trip to London??? :eek: :eek: :p

Really... it's only a marginal increase on what it's been consistantly hovering at for the last 12 months or so. ;)

iGav
Apr 18, 2007, 02:32 PM
Fasten your seat belts. I think we're all in for a bumpy ride over the next few years.

Lets hope 'eh. :D *begins crossing fingers and fumbs for several interest rate hikes over the coming months*

Queso
Apr 18, 2007, 02:34 PM
Lets hope 'eh. :D *begins crossing fingers and fumbs for several interest rate hikes over the coming months*
As long as they wait until October.

QuarterSwede
Apr 18, 2007, 02:56 PM
This is due to an incredibly weak dollar rather than a strong pound. The value of the pound is pretty stable against the rest of the major currencies, including the Euro. Major central banks have been dumping their dollar reserves, which says a lot about where they view the American economy as heading.

Fasten your seat belts. I think we're all in for a bumpy ride over the next few years.
Ahhh. Thanks for answer that.

It's too bad we keep outsourcing and buying cheap junk made in China, Taiwan, etc. All of our money is going out and not a lot is staying here or coming in.

skunk
Apr 18, 2007, 03:00 PM
It's too bad we keep outsourcing and buying cheap junk made in China, Taiwan, etc. All of our money is going out and not a lot is staying here or coming in.All we are doing is exporting our pollution to countries where press oversight is weaker and local government officials are more corruptible. And then we complain that China, Taiwan, India and so on are overtaking us in the pollution stakes.

Peterkro
Apr 18, 2007, 03:11 PM
The people winning here are Capitalist,they don't give a ***** about the $ or any other currency.At the moment they're borrowing big in Japan (low interest rates) and investing big in 's (high interest rates) what country they're based in is neither here nor there,they don't care about individual currency's soon it'll be something else and money will go there and that currency will rise.Capitalists are great Internationalists (they learnt it from the left).Meanwhile all the rest of the people keep fighting for there patch of dirt against " foreigners "

QuarterSwede
Apr 18, 2007, 03:18 PM
All we are doing is exporting our pollution to countries where press oversight is weaker and local government officials are more corruptible. And then we complain that China, Taiwan, India and so on are overtaking us in the pollution stakes.
I don't follow. By pollution do you mean crappy products or am I way off?

Unspeaked
Apr 18, 2007, 03:37 PM
I don't follow. By pollution do you mean crappy products or am I way off?

I think he means pollution in the classic sense...

You know, all those computer chips, plastic cups and barbie dolls they make overseas leave a lot of air and water damage behind... and many of the countries that are big on manufacturing aren't known for their devout policing of environmental laws.

yippy
Apr 18, 2007, 03:37 PM
Apart from one brief point during the Thatcher years when the two currencies hit equality during a Tokyo trading session, that's always been the case :)

Actually that is wrong, back around 2000 the Euro and US dollar were switched in exchange rate.

Queso
Apr 18, 2007, 03:43 PM
> $

Actually that is wrong, back around 2000 the Euro and US dollar were switched in exchange rate.
You're getting your and mixed up. = GBP, not EUR.

yippy
Apr 18, 2007, 03:44 PM
Whoops, the symbols look almost the same to me (I am going to get flamed for that one).

QuarterSwede
Apr 18, 2007, 04:03 PM
I think he means pollution in the classic sense...

You know, all those computer chips, plastic cups and barbie dolls they make overseas leave a lot of air and water damage behind... and many of the countries that are big on manufacturing aren't known for their devout policing of environmental laws.
Okay, I see. Thanks.

Queso
Apr 18, 2007, 04:10 PM
Whoops, the symbols look almost the same to me (I am going to get flamed for that one).
$, I think you might :)

skunk
Apr 18, 2007, 04:15 PM
¥€$, I think you might :)Might even get a bit of a £ing.

jonharris200
Apr 18, 2007, 04:24 PM
Money-saving tips around London for our poor American cousins...! ;)

(Perhaps others can add more or give tips for elsewhere in UK.)

1. Instead of shopping on Oxford Street, try one of London's many fabulous markets, eg Portobello Road market

2. Many museums, as noted previously in this thread, are free (apart from special exhibitions). Check them out.

3. Everything is much more compact (ie... crammed into a smaller space) over here. That means you don't always have to use public transport or an expensive black cab to get to where you want to. Walking is good.

4. London's parks and green spaces are a feature, very central and free. (I spent Sunday afternoon in St James' Park, and made some new friends who had purchased a frisbee for just £1 | $2 from Lilywhite's in Picadilly Circus.)

5. Lots of Subways over here now. Good for a cheap, wholesome sandwich lunch. You may have heard of them. :)

6. We have summer clothes sales in high street shops some time around June. Don't know if you have these across the pond or not?

7. Currently several free newspapers come out every day and are given out on every street corner. DON'T believe all the news in them, they're pretty trashy. But you'll probably find some special deals in them.

8. Lots of pubs and bars have a 'Happy Hour' in the late afternoon, say 5pm-6pm. Drinks are cheaper during this time to encourage trade during the lull. Again, maybe you have this Stateside too - not sure?

9. There's a ticket booth in Leicester Square that does reduced rate theatre tickets for West End productions. Never used it myself, but it's been going for years and you might pick up a same-day bargain. Pack nice clothes.

10. A walk along the South Bank from Waterloo to London Bridge, with a visit to Tate Modern and St Pauls (over the river), is pleasant with lots to see... and free. Street performers, views of river and city, cafes and restaurants on the way, London's bridges etc. You could see a lot and fill half a day this way.

11. Many central London churches stay open each day and are free to visit (donations invited). We know y'all love that cute British history thang.

12. Finally, why not MAKE some money by importing some Apple kit and selling it to your Brit friends? They'll get it cheaper, and you'll make a profit. Maybe not much, but an idea for the enterprising!

Eraserhead
Apr 18, 2007, 04:38 PM
5. Lots of Subways over here now. Good for a cheap, wholesome sandwich lunch. You may have heard of them. :)

Well cheap isn't something I can really say about Subway, but they aren't bad I suppose. Generally it works out at about 5/meal (for a 12" one) when I go.

For nice sandwiches try Pret (http://www.pret.com/) (they are so tasty :)).

jonharris200
Apr 18, 2007, 04:42 PM
Well cheap isn't something I can really say about Subway, but they aren't bad I suppose. Generally it works out at about £5/meal (for a 12" one) when I go.

Well I usually go for that day's special, 6-inch, for £1.99 - I guess actual spend depends on your appetite and what else you get with it though. Agree that Pret is tasty.

Eraserhead
Apr 18, 2007, 04:44 PM
Well I usually go for that day's special, 6-inch, for 1.99 - I guess actual spend depends on your appetite and what else you get with it though.

I could never have just a 6" one, I'd be hungry.

synth3tik
Apr 18, 2007, 04:46 PM
Ahh, nothing better then declining economy.

NavyIntel007
Apr 18, 2007, 05:33 PM
The Pound spiked due to higher than expected inflation. Higher inflation leads to higher interest rates. Higher interest rates cause currency traders to bet on your currency above all others. Should the US drop interest rates, you can bet the Pound will increase in value even more.

Americans, expect to see plenty of middle class Brits roaming around Orlando fun spots and Filthy rich brits buying up all that upscale highrise residential property that people are bailing out of.

All you gloom and doom people need to relax. A weak dollar before summer holiday is just what the US needs to expand the economy.

Queso
Apr 18, 2007, 05:38 PM
Americans, expect to see plenty of middle class Brits roaming around Orlando fun spots and Filthy rich brits buying up all that upscale highrise residential property that people are bailing out of.
The British Middle Classes don't do Orlando. It's all Europe, South Africa, the Galapagos and New Zealand with them I'm afraid. Expect Orlando to be full of the roughest looking Brits you can possibly imagine, all beer bellies, sunburn and drunken behaviour. It's very affordable now.

Enjoy :)

zami
Apr 18, 2007, 05:42 PM
We shouldn't bother comparing Sterling with a declining currency like the US Dollar, the comparison that counts is with the Euro, the currency of today and the future.

jonharris200
Apr 18, 2007, 05:44 PM
We shouldn't bother comparing Sterling with a declining currency like the US Dollar, the comparison that counts is with the Euro, the currency of today and the future.

Lucky that we know you're just kidding!

;)

Max Payne
Apr 18, 2007, 05:44 PM
This is bad for British economy.

jonharris200
Apr 18, 2007, 05:45 PM
This is bad for British economy.

From the perspective of an individual business, that depends mostly on whether you're an exporter or an importer.

Cromulent
Apr 19, 2007, 02:04 AM
This is bad for British economy.

It balances out. Manufacturing circles have been on the verge of resesion for years. Importers on the other hand are probably jumping for joy.

Abstract
Apr 19, 2007, 10:21 AM
That is a good news for the US economie.

More visitors to the US, more export of American good since they are cheaper now.

Lets look at the bright side :D

You positivity is killing me. You're in denial. Seek help......financial, psychological, and otherwise.


Fasten your seat belts. I think we're all in for a bumpy ride over the next few years.

You mean bumpy for them. ;)

250 for a week in London?! Christ, I can quite easily spend 120 on one night out in London, and that is going home to sleep. God knows what it would be with hotel prices on top of that.


I could survive on 250 quid during a 1 week vacation in London easily, accomodation and food included in that price.


Can someone point me to the nicest public bench in Hyde Park?

Queso
Apr 19, 2007, 10:32 AM
You mean bumpy for them. ;)
Bumpier for them definitely, but the US economy is still big enough for everyone to feel it when it gets sick. I'm just hoping the Eurozone keeps pulling out of the doldrums whatever the US does. It'll offset the effects.

Unspeaked
Apr 19, 2007, 10:38 AM
Can someone point me to the nicest public bench in Hyde Park?

The key is to find one under a tree - shade from the sun and cover from the rain!

Of course, you could always sleep under a bridge... there's lots of them.

NavyIntel007
Apr 19, 2007, 04:10 PM
The British Middle Classes don't do Orlando. It's all Europe, South Africa, the Galapagos and New Zealand with them I'm afraid. Expect Orlando to be full of the roughest looking Brits you can possibly imagine, all beer bellies, sunburn and drunken behaviour. It's very affordable now.

Enjoy :)

The Euro is at an all time high as well ($1.36...). I would say that Europeans buy more from the US than we do in return. The currency I'm really worried about is the Yuan.

China is easing their peg on the US dollar which means they're buying less US debt to keep the Yuan deflated. If that's the case, interest rates will go up (as will the US dollar in the short term) to pay for this F'n war. It is my belief that the US economy, while fairly healthy is balancing on a tightrope. China has pumped up our economy like a balloon. Interest rates will be the kicker to pop the sucker.

China has problems too though. Their people are demanding higher salaries and the dollar is continuing to devalue against the Yuan. If the Yuan rises too fast it will practically destroy their manufacturing base overnight and kill the US economy until we can figure out a way to manufacture stuff again.

Or perhaps nothing drastically bad will happen. The good news about the global economy is that it seems the interconnection should keep markets relatively stable. Ideally when one is down others will pick up the slack and eventually pull the one up.

Fiscal responsibility by our government is the only thing that will pull the dollar back up.