Weak dollar makes US "great destination"

The weak US dollar makes it an ideal place to holiday this year and to buy a home.

With the US already being much cheaper than the UK the weaker currency can only add to holidaymaker's enjoyment, says an expert.

Adrian Jacob, trading director for Currency UK, said that it was partly a psychological thing with people thinking they are getting better value for money.

"The reality is that [the exchange rate has] been at 1.90 for the last year, so a move of ten per cent … isn't actually a hugely massive difference- but obviously it's a psychological thing," he said.

The company went on to say that it thought the dollar would continue to weaken, especially against the euro.

Mr Jacob also said that the weak dollar may attract holiday home buyers, but that this would be a purely recreational move as there is no investors market at the moment.

Earlier this month the US Federal Reserve cut interest rates from 4.25 pre cent to 3.5 per cent in an attempt to stop a recession.

Digg    Reddit    Facebook    Tweet This