Brown bailout boosts sterling

Gordon Brown’s bank bailout plan has been given a vote of confidence by international currency traders and speculators as currency markets bolster Sterling while equity markets remain chaotic according to currency exchange specialists FC Exchange.

The South African Rand has dropped in value by 20% against Sterling while the Australian Dollar is also trading at much lower rates than just over a week ago.

“Initially people were still working out what the bailout plan meant for the UK and the markets were very volatile”, said Nick Fullerton, MD of FC Exchange.

“Sterling’s growing strength over the past week has revealed that traders consider other currencies around the world more of a risk at the moment. But even though currency markets have calmed slightly there are still ways for people to benefit.

“The South African Rand has lost over 20% of its value over the last week as people ditch what they see as one of the more risky currencies and take on those perceived as safer like Sterling and US Dollars.

“Many FC Exchange customers that were waiting for a good exchange rate for Australian Dollars have now cashed in on the dramatic market movements of two weeks ago. Last week the pound had even started to claw back some value against the US Dollar.

If you are planning to buy Australian or South African currency over the next few months and want to make sure you still get the great rates that are available at the moment you could consider a Forward Contract which will freeze the rates for up to two years for a 10% deposit.

For more information, visit foreign-currency-uk.com