Pound Drops to USD1.38

Pound Drops to $1.38

The British Pound sunk to new depths today on foreign exchange markets on the back of lack of confidence in the British Banking system.

Banking shares tumbled across all major Banks following the Government injection of a further £40bn into Royal Bank of Scotland (RBS) and the offer of further funding to others.  RBS shares fell 68% with Lloyds TSB and Barclays also fell significantly.

This led to huge move in currency markets, with the pound dropping to its lowest point against the dollar in 8 years to £1 to $1.38 in addition to a record low against the Japanese Yen.

Whilst this does little to improve the lot of the holidaymaker or more importantly businesses that need to buy goods, services and materials overseas, it is good news for those businesses in the UK that are exporting i.e.  selling services overseas and bringing in much needed wealth and jobs.  Our goods and services are now much cheaper to the overseas buyer.

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