Foreign Exchange Rates – Table of Contents

GUIDE: Best Exchange Rate Offers and Guide

1. 1. Get the best exchange rates for bank to bank transfers
   2. The Official Exchange Rate Vs. The Sell/Buy Rate
   3. Realistic rate expectations and benchmarks
   4. Tips and additional information

Today’s Official Interbank Exchange Rates

1. 1. From Pound Sterling to Other Currencies
      1. Common pairings (EUR, USD, AUD…)
      2. To Exotic Currencies (HKD, ILS, BRL…)
   2. From Euro to Other Currencies
      1. Common pairings (GBP, USD, AUD…)
      2. To Exotic Currencies (HKD, ILS, BRL…)
   3. From US Dollar to Other Currencies
      1. Common pairings (EUR, GBP, AUD…)
      2. To Exotic Currencies (HKD, ILS, BRL…)
   4. From Australian Dollar to Other Currencies
      1. Common pairings (EUR, USD, GBP…)
      2. To Exotic Currencies (HKD, ILS, BRL…)

Forecast for Pound Sterling

1. 1. GBP vs Euro
   2. GBP vs US Dollar
   3. Additional resources

An example using the live foreign exchange rate:

The current exchange rate for Pound in Australian Dollars is 1.8226 AUD, and you need to transfer abroad an amount of £100,000 to Australian Dollars. Your bank’s spread is 2% so you’ll end up with 178,617.8748 AUD after the exchange. Definitely not the best fx rate for money transfers!

It means the spread fee you paid in practice (whether they’d like to call this a fee or not!) is £2,000 or 3,645.2628 AUD.

Common Currency Pairs – From GBP

Current Pound to Euro Rate:

• 1 Pound is €1.1608 EUR
• 10,000 Pound are €11,608.1382 EUR 

Current  Pound to US Dollars Rate:

• 1 Pound is $1.4187 USD
• 10,000 Pounds are $14,186.9931 USD 

Current  Pound to Australian Dollars Rate:

• 1 Pound is A$1.8226 AUD
• 10,000 Pounds are A$18,226.3138 AUD

Current  Pound to Japanese Yen Rate: 1 Pound is

• ¥154.7148 JPY
• 10,000 Pounds are ¥1,547,148.3435 JPY

Current  Pound to South African Rand Rate: 1 Pound is

• R19.8853 ZAR
• 10,000 Pounds are R198,853.4072 ZAR

Current  Pound to New Zealand Dollar Rate:

• 1 Pound is $1.9608 NZD
• 10,000 Pounds are $19,608.4106 NZD

Less Common Currencies Pairings – From GBP

• Pound to Canadian Dollar Rate: 1 Pound is $1.7129 CAD.
• Pound to Israeli New Shekel Rate: 1 Pound is ₪4.6158 ILS.
• Pound to Hong Kong Dollar Rate: 1 Pound is $11.0170 HKD.
• Pound to United Arab Emirates Dirham Rate: 1 Pound is 5.2112 AED.
• Pound to Brazilian Real Rate: 1 Pound is R$7.4639 BRL.
• Pound to Argentine Peso Rate: 1 Pound is $133.4789 ARS.
• Pound to Mexican Peso Rate: 1 Pound is $28.1826 MXN.
• Pound to Chinese Yuan Rate: 1 Pound is ¥9.1177 CNY.
• Pound to Indian Rupee Rate: 1 Pound is R103.7317 INR.

Common Currency Pairs – From EUR

Current Euro to Pound Rate:

• 1 Euro is £0.8615 GBP
• 10,000 Euro are £8,614.6459 GBP

Current Euro to US Dollars Rate:

• 1 Euro is $1.2222 USD
• 10,000 Euros are $12,221.5921 USD

Current Euro to Australian Dollars Rate: 1 Euro is

• A$1.5701 AUD
• 10,000 Euros are A$15,701.3238 AUD

Current Euro to Japanese Yen Rate:

• 1 Euro is ¥133.2814 JPY
• 10,000 Euros are ¥1,332,813.5083 JPY

Current Euro to South African Rand Rate:

• 1 Euro is R17.1305 ZAR
• 10,000 Euros are R171,305.1683 ZAR

Current Euro to New Zealand Dollar Rate:

• 1 Euro is $1.6892 NZD
• 10,000 Euros are $16,891.9513 NZD

Less Common Pairings – From Euro

• Euro to Canadian Dollar Rate: 1 Euro is $1.4756 CAD.
• Euro to Israeli New Shekel Rate: 1 Euro is ₪3.9763 ILS.
• Euro to Hong Kong Dollar Rate: 1 Euro is $9.4907 HKD.
• Euro to United Arab Emirates Dirham Rate: 1 Euro is 4.4892 AED.
• Euro to Brazilian Real Rate: 1 Euro is R$6.4299 BRL.
• Euro to Argentine Peso Rate: 1 Euro is $114.9873 ARS.
• Euro to Mexican Peso Rate: 1 Euro is $24.2783 MXN.
• Euro to Chinese Yuan Rate: 1 Euro is ¥7.8546 CNY.
• Euro to Indian Rupee Rate: 1 Euro is R89.3612 INR.

Common Currency Pairs – From USD

Current US Dollar to Euro Rate:

• 1 US Dollar is €0.8182 EUR
• 10,000 US Dollar are €8,182.2400 EUR

Current US Dollar to Pound Rate:

• 1 US Dollar is £0.7049 GBP
• 10,000 US Dollars are £7,048.7100 GBP

Current US Dollar to Australian Dollars Rate:

• 1 US Dollar is A$1.2847 AUD
• 10,000 US Dollars are A$12,847.2000 AUD

Current US Dollar to Japanese Yen Rate:

• 1 US Dollar is ¥109.0540 JPY
• 10,000 US Dollars are ¥1,090,540.0000 JPY

Current US Dollar to South African Rand Rate:

• 1 US Dollar is R14.0166 ZAR
• 10,000 US Dollars are R140,166.0000 ZAR

Current US Dollar to New Zealand Dollar Rate:

• 1 US Dollar is $1.3821 NZD
• 10,000 US Dollars are $13,821.4000 NZD

Less Common Pairings – From USD

• US Dollar to Canadian Dollar Rate: 1 US Dollar is €1.2074 CAD.
• US Dollar to Israeli New Shekel Rate: 1 US Dollar is ₪3.2535 ILS.
• US Dollar to Hong Kong Dollar Rate: 1 US Dollar is $7.7656 HKD.
• US Dollar to United Arab Emirates Dirham Rate: 1 US Dollar is 3.6732 AED.
• US Dollar to Brazilian Real Rate: 1 US Dollar is R$5.2611 BRL.
• US Dollar to Argentine Peso Rate: 1 US Dollar is $94.0854 ARS.
• US Dollar to Mexican Peso Rate: 1 US Dollar is $19.8651 MXN.
• US Dollar to Chinese Yuan Rate: 1 US Dollar is ¥6.4268 CNY.
• US Dollar to Indian Rupee Rate: 1 US Dollar is R73.1175 INR

Common Currency Pairs – From AUD

Current Australian Dollar to Euro Rate:

• 1 Australian Dollar is €0.6369 EUR
• 10,000 Australian Dollar are €6,368.8897 EUR

Current Australian Dollar to Pound Rate:

• 1 Australian Dollar is £0.5487 GBP
• 10,000 Australian Dollars are £5,486.5729 GBP

Current Australian Dollar to US Dollar Rate:

• 1 Australian Dollar is$0.7784 USD
• 10,000 Australian Dollars are $7,783.7972 USD

Current Australian Dollar to Japanese Yen Rate:

• 1 Australian Dollar is ¥84.8854 JPY
• 10,000 Australian Dollars are ¥848,854.2250 JPY

Current Australian Dollar to South African Rand Rate:

• 1 Australian Dollar is R10.9102 ZAR
• 10,000 Australian Dollars are R109,102.3725 ZAR

Current Australian Dollar to New Zealand Dollar Rate:

• 1 Australian Dollar is $1.0758 NZD
• 10,000 Australian Dollars are $10,758.2975 NZD

Less Common Pairings – From AUD

• Australian Dollar to Canadian Dollar Rate: 1 Australian Dollar is €0.9398 CAD.
• Australian Dollar to Israeli New Shekel Rate: 1 Australian Dollar is ₪2.5325 ILS.
• Australian Dollar to Hong Kong Dollar Rate: 1 Australian Dollar is $6.0445 HKD.
• Australian Dollar to United Arab Emirates Dirham Rate: 1 Australian Dollar is 2.8591 AED.
• Australian Dollar to Brazilian Real Rate: 1 Australian Dollar is R$4.0951 BRL.
• Australian Dollar to Argentine Peso Rate: 1 Australian Dollar is $73.2342 ARS.
• Australian Dollar to Mexican Peso Rate: 1 Australian Dollar is $15.4626 MXN.
• Australian Dollar to Chinese Yuan Rate: 1 Australian Dollar is ¥5.0025 CNY.
• Australian Dollar to Indian Rupee Rate: 1 Australian Dollar is R56.9132 INR

Current Pound Vs Euro Rate:

If you want to conduct a spot FX transaction these are the current GBPEUR rates

2020 – Covid year, Brexit Agreed – not seeing the pre-Brexit Pound ever again?

In the hope it would help to push through a withdrawal agreement, Theresa May resigned and Boris Johnson was elected as the new prime minister. Sterling hit its lowest-ever rate against the Euro early in the year because the market were predicting no trade deal will be signed.

It was a last ditch effort to finalise a brexit agreement but it finally go through just before the end of 2020, at the end of the very year that change the face of the world and made markets go crazy, and it was expected the Sterling will jump significantly.

The GBPEUR rate shot up significantly from December to March 2021 but the rally did not sustain and the Pound Sterling is trading at approximately the same levels it was ever since 2016 i.e. the 1.1 to 1.18 range against the Euro.

2019 Onwards – Brexit Impasse and UK political uncertainty

The pound started steady in 2019 as the market maintained hope the brexit withdrawal agreement could be passed. Theresa May taking this for a vote in the House of Commons no less than three times, hoping that with its new found support from the DUP it could be pushed through. But with a number of conservatives voting against the government they couldn’t get close to the required majority. By historical standards some of the foundations of the UK economy appeared strong too, unemployment was below 4% and Q1 GDP was at 0.5%. This however slowed to 0.2% in Q2 and unemployment is reported to have risen throughout the year. 

In the hope it would help to push through a withdrawal agreement, Theresa May resigned and Boris Johnson was elected as the new prime minister. However with this only increasing the chances of a no deal GBP hit new lows against EUR, not seen since the end of the financial crisis in 2009. Taking the GBPEUR rate as low as 1.07.

After fresh lows in August 2019, the pound began to recover as parliament continued to search for ways to block a no deal brexit and the government increased its negotiations with the EU, seeking to reach a new withdrawal agreement that would replace the Irish backstop.  In October GBPEUR sat around the 1.15 level and continued on an upward trend throughout the year, peaking at a 3 year high of 1.207 after the December General Election. Shaking up the House of Commons and providing the conservatives with an overwhelming majority in Parliament. Gains however retreating back to mid 1.17 as concerns remain high for a no deal outcome at the end of 2020. 

Jan 2 2017 – 2019: Euro recovery

Overall Sterling sentiment continued to weaken in 2017 with the UK government’s inability to secure a majority in the General Election increasing fears of instability and also making it even more difficult to secure a satisfactory outcome to the Brexit negotiations. In 2018, the GBPEUR stayed within the range of 1.10-1.15. The closer it got to the end of the year, the lower the rate was based on concern of a “no deal Brexit” leaving the UK economy volatile and vulnerable. There was a slight recovery in November 2018 based on rumors the EU and the UK reached an agreement.. 

Selling pressure on Sterling was intensified by a strong Euro recovery as stronger growth rates triggered expectations of an ECB move to tighten monetary policy.

June 23rd 2016 – 2017: Brexit represents another UK shock

The relative balance of forces changed substantially following the June 23rd UK referendum on whether to remain in the EU.

There had been very limited expectations that the UK could vote to exit the EU and the leave result triggered a substantial market shock.

There were increased fears surrounding the long-term UK outlook with concerns that underlying growth rates would be substantially weaker over the medium term.

The Bank of England also cut interest rates once again to 0.25% which undermined Sterling confidence. The inconclusive June 2017 election increased fears over political instability and there were expectations of difficult negotiations with the EU.

2014 – June 22nd 2016: Euro weakness dominates

During this period, there were further concerns surrounding the Euro-zone outlook as governments and the ECB were unable to find a permanent solution to the crisis.  The debt crisis continued to flare-up with another bailout for Greece while the Euro was trapped in permanent low growth with further speculation that the Euro would break up.

As confidence in the Euro-zone and Euro continued to weaken, ECB President Draghi announced that he would do whatever it takes to protect the Euro. Draghi was successful in preventing a break-up of the Euro area.

The ECB, however, was forced to cut interest rates very aggressively in an attempt to meet its inflation target and ease financial tensions. The move to zero interest rates and a negative deposit rate, together with the quantitative easing programme, pushed the Euro sharply lower against all major currencies. Sterling was, therefore, able to make headway as EUR/GBP retreated to the 0.7000 area despite very low UK interest rates.   

2011 – 2014: UK recovery, Euro-zone crisis

The UK economy gradually emerged from recession with a return to growth and there was a steady recovery in the banking sector.

At the same time as a gradual UK recovery, confidence in the Euro-zone outlook deteriorated sharply.

The Euro-zone had been pushed into recession during the global banking crisis and, although fears surrounding the banking sector were slower to emerge, fears escalated during this period.

The Greek debt crisis also emerged for the first time in 2010 with the Euro-zone members effectively forced to bailout Greece in order to prevent a serious collapse within the Euro-zone banking sector.

Governments found it very difficult to control the debt crisis and the Euro-zone as a whole lurched from crisis to crisis with persistent fears over a sovereign debt crisis.

The tables were, therefore, turned in global currency markets with the Euro under sustained selling pressure while there was a net recovery in Sterling with EUR/GBP declining to the 0.8000 area. 

2008 – 2011: global financial crisis, UK banks badly damaged

The first real evidence of the great financial crisis emerged in August 2017 with redemptions halted in two property funds.

The immediate UK impact was limited, but stresses quickly emerged in the money markets as wholesale lending started to seize up. Given that there had been an increased dependence on money-market lending by UK financial institutions, confidence in the sector quickly declined and financial difficulties emerged.

The initial focus was on Northern Rock which requested government support in November 2017. The crisis intensified rapidly in early 2008 with Northern Rock nationalised. The UK suffered a wider banking-sector crisis as Lloyds Bank and the Royal Bank of Scotland required government support to avoid collapse.

The banking crisis was an important factor in pushing the UK economy into a deep recession and the Bank of England was forced to cut interest rates very aggressively to stabilise financial conditions.

Although the banking crisis was a global feature, the UK banking crisis was a key factor in triggering heavy selling pressure on Sterling as EUR/GBP peaked at record highs around 0.9800.

2003 – 2007: the great moderation, false UK optimism

At the time, the period between 2003 and 2008 was marked by an optimistic period for the UK economy. Under the Blair government, government finances were boosted by strength in tax revenue and deficits appeared to be under control in historic terms.

The Bank of England Monetary Policy Committee remained successful in controlling inflation which held close to the 2% target and there were no serious concerns surrounding the balance of payments. Overall GDP growth also maintained a firm tone which helped underpin Sterling sentiment.

With hindsight, the macro-economic policy framework was building up excessive debt amid lax regulation and compounded by excessive global debt expansion, although these concerns were relatively limited at the time.

Jan 1st 1999 – 2003: Euro teething troubles

The Bank of England was granted independence to set interest rates following the 1997 general election and by the time of the Euro’s introduction in 1999, the framework was well established.

The Euro was unable to make headway following its 1999 launch and the single currency weakened sharply to lows below 0.8500 against the dollar in 2000 with an underlying lack of confidence in cohesion for the new currency. EUR/GBP hit a low below 0.5700 in early 2000.

Current GBP Rates (GBPUSD):

If you want to conduct a spot FX transaction these are the current GBP/USD rates

August 2019 onwards: slight recovery for Sterling, crash, and more recovery

The US is currently growing at an annualised 2%, lower than its 3.1% target.   Despite this the fed held rates in their latest December meeting, keeping the rate between 1.5-1.75%. None of the policy makers are expecting to set rates below 1.5% until at least the end of 2022, and only if the economy is really slowing. 

News of a new withdrawal agreement for the UK  temporarily pushed sterling higher in October, gaining  value against the dollar to recover from all time lows. GBPUSD pipped 1.30 before levelling out to around 1.28 towards the end of October 2019. But ended the year stronger, fluctuating between 1.30-1.35 throughout December 2019.

Then Covid happened and the GBP to USD foreign exchange rate was at its worst at years touching 1.15, the brexit agreement was announced, and the USD remained low helping the rate to reach almost its pre-brexit level at 1.39 in May 2021 (it was 1.44 on April 2016 shortly before the referendum).

April 2018 to August 2019: Sterling slips back to lows

The US dollar gained significantly against all currencies throughout 2018 because of four rate hikes by the Fed. And generally maintained its strength throughout 2019 despite two interest rate cuts. Of the four rate hikes in 2018, whilst the first one did not hit the market by surprise, the September and December rate hikes made the market understand the no-interest era was gone in the US. The fed then came under heavy pressure from Donald Trump in 2019 to slash interest rates in a complete change of policy to boost consumer spending.

But whilst the fed did lower rates at two points, taking base rates to within 1.75-2%, it didn’t cut rates anywhere near as much as Trump desired. In addition to this, the pound had been showing signs of weakness based on Brexit – the closer the date was ticking to March 2019, when the UK was originally set to leave the EU whether there was an agreement in place or not, the higher the levels of concern and panic. Prime Minister Theresa May demonstrated a lack of support for her actions and the deal she reached with the EU was rejected by parliament multiple times., Eventually ending in Theresa May’s resignation in order to make progress on the issue of Brexit.

January 16th 2017 until April 2018:  Sterling recovers from 30-year lows

Sterling dipped to 31-year lows just below 1.2000 in January before recovering some ground as the economy regained momentum. Sentiment, however, weakened again from June following the UK General Election. The government’s inability to secure a majority increased fears of instability with fears that Brexit negotiations would become even more difficult given UK weakness.

Sterling selling was intensified by a strong Euro recovery as stronger growth rates triggered expectations of an ECB move to tighten monetary policy while UK rates remain at record lows.

The dollar spiked higher following the unexpected election of US President Trump amid expectations of aggressive tax cuts which would tend to strengthen growth and potentially trigger a faster pace of Fed tightening. Confidence in Trump and the reform agenda faded rapidly and allowed GBP/USD to stabilise around 1.30 as the dollar came under sustained pressure.

June 23rd 2016 – January 15th 2017: Brexit shock triggers Sterling slump

The June 23rd UK referendum on whether to remain in the EU was an important shock to global markets, especially as there had been strong expectations that late momentum would be more likely to favour the remain side.

Fears surrounding the long-term UK outlook increased with expectations that underlying growth trends would be weaker and longer-term deterioration in the economic performance.

The Bank of England also cut interest rates once again to a record low of 0.25% which undermined Sterling confidence. Selling culminated in a flash crash in early October with GBP/USD losing over 5% in a matter of minutes before recovering ground.  

July 2014 – June 22nd 2016: Dollar strength dominates

During this period, there were fluctuations in Sterling confidence with volatility, for example, surrounding the Scottish independence referendum.

The UK economy was relatively stable with solid underlying growth. The Bank of England, however, was unable to find a reason to raise interest rates and Sterling lost ground.

The main focus was on the dollar which appreciated sharply from July 2014. The Federal Reserve moved to end the quantitative easing programme with bond buying completed in October 2014.

Crucially, the Federal Reserve was the only major central bank which was tightening monetary policy. The ECB was cutting interest rates amid fears surrounding deflation while the Bank of Japan maintained a very aggressive easing. In this environment, the dollar gained firm support with strong gains over the second half of 2014, although Sterling also maintained a generally robust tone.

November 2010 – 2014: US and UK recovery, relative calm

Following the financial crisis, the US and UK economies gradually recovered ground during the 2011-2014 period.

The Federal Reserve was still very uneasy surrounding the pace of recovery and the quantitative easing programme continued. The Fed announced a second round of bond purchases with purchases of government bonds of $75bn per month with total purchases of $600bn.

The Fed also announced a policy to keep long-term interest rates lower and there was a third round of government bond purchases between September 2012 and December 2013.

The expansionary Fed policy was important in restraining dollar support, although the Bank of England also maintained interest rates at extremely low levels of 0.50% which limited the potential for Sterling gains.  Overall, the UK currency eventually advanced to the 1.70 area before fading.

2008 – November 2010: global financial crisis, dollar gains by default

The first real evidence of the great financial crisis emerged in August 2007 with redemptions halted in two property funds.

Stresses quickly emerged in the money markets as wholesale lending started to seize up which put pressure on UK financial institutions.

The crisis intensified rapidly in early 2008 with Northern Rock nationalised while Lloyds Bank and the Royal Bank of Scotland both required government support to avoid collapse.

The banking crisis was an important factor in pushing the UK economy into a deep recession and the Bank of England was forced to cut interest rates very aggressively to stabilise financial conditions.

The US economy also suffered a deep recession and the collapse of Lehman Brothers Bank was a crucial factor in intensifying the global crisis.

In times of financial turmoil, however, there tends to be demand for US Treasuries and the dollar on defensive grounds and there were capital inflows into the US currency. An important feature was very high volatility across all asset classes.

The combination of dollar recovery and heavy Sterling losses triggered a massive GBP/USD decline to below 1.40 from near 2.00.

July 2001 – March 2008: the great dollar slide

The dollar index peaked just above the 121.0 level in July 2001 before embarking on a prolonged slide over the next 3 years with the dollar index dipping to lows near the 80.0 level.

The US currency initially came under pressure in the face of interest rate cuts and a slide towards recession. The Federal Reserve continued to cut interest rates as the economy moved into recession and rates eventually declined to lows of 1.0% in 2003.

The US currency continued to be undermined by a loose monetary policy over the next 3 years. In contrast, there was increased optimism surrounding the UK outlook as hype surrounding the Blair government hit a peak which boosted Sterling support.

GBP/USD broke above 1.90 during 2004 and, although there was a retreat to the 1.70 area in 2005, the UK currency regained ground and rallied to above the key 2.000 level in 2007 as the dollar index hit a low of below 74.0 in early 2008.

Jan 1st 1999 – Jan1st 2002: Dollar in charge

The Federal Reserve tightened monetary policy during 1999 and rates peaked at 6.5% in July 2000 from 4.5% at the beginning of 1999.

Although there were significant fluctuations in UK interest rates, there were only limited net changes as US policy dominated. GBP/USD declined to lows just below 1.3700 in June 2001.