...Going...And Going...And Going...

Just about two weeks ago, I mentioned how happy I was to see that the pound-dollar exchange rate had fallen to $1.73 per pound. Today, the exchange rate is at an unbelievable $1.53/£, the lowest it's been since 2002. Analysts in London are saying we might see it dip into the $1.40 range in the near future.

On top of that, the pound lost 9.8% of its value this week relative to the surprisingly strong dollar...that's the largest drop we've seen since 1971. While it doesn't bode well for the British economy, Prime Minister Gordon Brown is hoping that the low rates will encourage foreign investment and drive the UK economy out of its first recession in over a decade (the longest streak of economic growth in the past century).

Suffice it to say, I will be visiting the local Barclay's ATM in a big way in the next few days.

Like A Brick.

In a week of looming economic darkness, a hint of light for Americans abroad. The falling exchange rate hit an all time low this week, dipping today to $1.73 per pound. (That's almost 25 cents lower than when I left California in August.) The figure above shows the downward trend since early July.

With the £500 billion British bailout and interest rate cut announced today, however, that may change in the very near future. That the value of the GBP is falling like a brick against the USD in a time when the US economic infrastructure faces ruin shows just how central the American economy is to the rest of the world. For now, I'm withdrawing while the rate lasts.

Pounds

Now that I'm spending in Pounds, I've been keeping a close eye on that exchange rate and there's been some good news (for Americans, that is) on the international exchange rate front. When I left the states on August 18, the exchange rate hovered around $2/£, today that number has fallen to just about $1.75/£. It's bad news for the Brits, but great news for us Yanks.

Here's a slightly outdated article from CNN about the sinking exchange rate.