Britain’s pound sterling is facing instability this year. And behind this setback, the U.S. dollar is gaining grounds.
Here are some of the stories behind this recent financial seesaw.
High Cost of Stroll
Chloe and Rob shared their experiences on their recent trip to America. According to the two (who just got the chance of knowing each other inside a coffee shop), the cost of living in the U.S. skyrocketed to the extreme level.
Even the coffee that they enjoyed cost more than 21 USD (£17). Rob and Chloe agreed that it was the most expensive coffee they have ever bought in their entire life.
When they reached New York, they decided to spend quality time at the Little City. But same as in the coffee shop, the items sold in the area cost too much.
According to Chloe, where in the world will you pay $96 for two slices of pizza, two glasses of wine, and a bit of tip? Only in America.
What Happened to Pound?
The exchange rate between the sterling and the USD is the culprit of the commodity’s price surge.
Britain’s currency this quarter traded way down to $1.25 (the lowest rate since April 2017).
But despite the poor performance of the pound, a lot of British tourists still flocked to the U.S. As of May 31, the total tourist from England who visited the U.S. reached 1.8 million. The said number of tourists carved an 8.2% increase compared to the same period last year.
According to economic expert Adam Sacks, this trend will not sustain a longer span. The low exchange rate of the British pound will hinder tourists from going to the United States. What will probably happen, Sacks said, is that British tourists will find alternative countries wherein they can maximize their currency.