The current exchange rates means British investors need to act fast to profit from the $2 pound.
Window of opportunity
It isn’t just the shoppers who are benefiting from the current exchange rates that get you $2 for every pound â€“ the business world can benefit too. But economists are saying the window of opportunity may be short lived. If you are thinking about buying an investment property, or investing in American denominated assets, financial advisors are urging them to cash in on the current exchange rates that have seen the dollar plunge. The historic rise of the pound above $2 won’t last.
Exchange rates favourable for investors
The last time the exchange rates were so favourable for the British pound against the American dollar was back in 1992 thanks to a big hike in UK inflation. And now it’s back â€“ the â€˜buy one dollar, get one free’ which means American shares and property investments are cheaper than they have been in over 15 years.
The slide of the greenback
The slide of the greenback analysts are saying, won’t last â€“ and so shoppers, consumers, investors and property investors need to act fast. Historically the exchange rates that have seen the pound rise above $2 are followed by a big drop. And even a drop of a few percent can have a big impact if you have major investments.
Snap up dollars
Economists are unanimous in saying it’s a good time to snap up dollars and make the most of the exchange rates now â€“ even if you do not need dollars now, you can fix into the current high exchange rates using specialist currency exchange brokers for up to two years, giving you space and time to make the most of your dollars if for example you’re considering buying a property Stateside or going on a shopping spree later in the year.
Second home abroad
Many Brits are looking for second homes or holiday lets abroad, and the countries that trade in the dollar are now property hotspots thanks to the exchange rates. If you have been thinking about purchasing a bolthole abroad, countries such as Dubai, where the currency is linked to the dollar, are golden opportunities, as well as countries such as the Bahamas and Caribbean where property can be purchased using US dollars.
Markets linked to the dollar
As well as property, the exchange rate mean it’s an opportunistic time to buy US shares or an American fund as the pound stretches the dollars further. Other emerging markets, economists say, such as Latin America and China, whose currencies are linked to the dollar are also good investment opportunities.
Now is certainly time to book your holiday to the States and travel agents have already reported a 30% rise in bookings thanks to the exchange rates and the strengthened pound.