Tracking currency, trends? Especially the pound.

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614

Subject: RE: Tracking currency, trends? Especially the pound.

http://www.oanda.com/currency/graph should do what you're looking for.

Extreme Veteran

732

Omaha, USA

Subject: RE: Tracking currency, trends? Especially the pound.

BikerGrrrl - 2011-01-07 8:50 AM

I am watching the value of the dollar compared to the British Pound because I need to pay for something in pounds and want the best exchange rate possible. I have set myself up for a daily tracker e-mail showing me the current rate.

Where/How can I find out more about the strength of the dollar vs. pound so that I can guess if there's a big change coming, what would be considered a "good" rate, etc. I flunked out of the economics class I tried to take in college and know nothing about this. Maybe it's "good" now, who knows? I know that it's quite a bit better than when I visited England 3 years ago, when I think the exchange was closer to 2:1.

Maybe a news site I can add to my news reader, or something like that?

Any advice is welcomed.

Another concern is what the "pip" spread and fees your bank is going to charge you for the exchange. Might want to shop around. 1.5UDS:1GBP is about where it was in 2002 (also briefly in 2008 and 2009), has been no lower than 1.4 for any significant period of time since at least 1994 and above 2 for a time in 2007.

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Champion

10018

, Minnesota

Bronze member

Subject: RE: Tracking currency, trends? Especially the pound.

Thanks guys, very useful! I did check to make sure my credit card doesn't charge a fee. I have an old card that does - how disappointing. Love Capital One!

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Extreme Veteran

732

Omaha, USA

Subject: RE: Tracking currency, trends? Especially the pound.

BikerGrrrl - 2011-01-07 9:44 AM

Thanks guys, very useful! I did check to make sure my credit card doesn't charge a fee. I have an old card that does - how disappointing. Love Capital One!

They may not charge a "fee" that you see, but the pip spread could be wide enough that you'd want to make the transaction differently, especially if it's an expensive item. For example Cap1 might have zero fees, the "spot" rate is 1.5, but they do the exchange at 1.6. Another bank might charge $25 in fees and do the exchange at 1.55. If the item is 1,000GBP, then you would actually "save" $25 by going with the fee based bank. As Sgt. Esterhaus would say, "Be careful out there!"

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Payson, AZ

Subject: RE: Tracking currency, trends? Especially the pound.

VeganMan - 2011-01-07 9:08 AM

BikerGrrrl - 2011-01-07 9:44 AM

Thanks guys, very useful! I did check to make sure my credit card doesn't charge a fee. I have an old card that does - how disappointing. Love Capital One!

They may not charge a "fee" that you see, but the pip spread could be wide enough that you'd want to make the transaction differently, especially if it's an expensive item. For example Cap1 might have zero fees, the "spot" rate is 1.5, but they do the exchange at 1.6. Another bank might charge $25 in fees and do the exchange at 1.55. If the item is 1,000GBP, then you would actually "save" $25 by going with the fee based bank. As Sgt. Esterhaus would say, "Be careful out there!"

Wow, that is good info. Thanks. I was thinking of getting a no fee card for my trip to New Zealand. Now, if your purchases are small, like say meals, I would think the no fee is still a better deal...but then I would have to do math.

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10018

, Minnesota

Bronze member

Subject: RE: Tracking currency, trends? Especially the pound.

This is what they say: "Capital One does not charge a fee for using your credit card for foreign currency transactions. Foreign purchases will be converted at the foreign exchange rate in effect at the time of posting the charge."

I assumed that the "rate in effect" would be a standard number, but should I question them about the rate they are using?

VeganMan - 2011-01-07 10:08 AM

BikerGrrrl - 2011-01-07 9:44 AM

Thanks guys, very useful! I did check to make sure my credit card doesn't charge a fee. I have an old card that does - how disappointing. Love Capital One!

They may not charge a "fee" that you see, but the pip spread could be wide enough that you'd want to make the transaction differently, especially if it's an expensive item. For example Cap1 might have zero fees, the "spot" rate is 1.5, but they do the exchange at 1.6. Another bank might charge $25 in fees and do the exchange at 1.55. If the item is 1,000GBP, then you would actually "save" $25 by going with the fee based bank. As Sgt. Esterhaus would say, "Be careful out there!"

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Champion

34263

Chicago

Subject: RE: Tracking currency, trends? Especially the pound.

In the past year it hit a high of 1.65 pounds/dollar and a low of 1.42 pounds/dollar. You're at about 1.55 right now. I'd just do it and get it over with. Chances are you're not going to see MUCH of a savings (depending on how much the bill is, of course) in the next few months.

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Extreme Veteran

732

Omaha, USA

Subject: RE: Tracking currency, trends? Especially the pound.

BikerGrrrl - 2011-01-07 11:05 AM

This is what they say: "Capital One does not charge a fee for using your credit card for foreign currency transactions. Foreign purchases will be converted at the foreign exchange rate in effect at the time of posting the charge."

I assumed that the "rate in effect" would be a standard number, but should I question them about the rate they are using?

VeganMan - 2011-01-07 10:08 AM

BikerGrrrl - 2011-01-07 9:44 AM

Thanks guys, very useful! I did check to make sure my credit card doesn't charge a fee. I have an old card that does - how disappointing. Love Capital One!

They may not charge a "fee" that you see, but the pip spread could be wide enough that you'd want to make the transaction differently, especially if it's an expensive item. For example Cap1 might have zero fees, the "spot" rate is 1.5, but they do the exchange at 1.6. Another bank might charge $25 in fees and do the exchange at 1.55. If the item is 1,000GBP, then you would actually "save" $25 by going with the fee based bank. As Sgt. Esterhaus would say, "Be careful out there!"

Call to ask what their USD:GBP buy/sell spread is or ask what their basis is. For an interest rate example, what percentage above prime are you going to charge me?

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Tracking currency, trends? Especially the pound.

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