Whether you’re transferring money to a loved one or conducting business in the US, make your money go further with a strong exchange from British pounds to US dollars.
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The mid-market pound-to-dollar exchange rate is 1 GBP = 1.30 USD. (Rate accurate as of Oct 28, 2020.)
We’ve gathered today’s best rates to inform your foreign exchange decisions when sending money from the UK to the US.
| USD | AUD | CAD | EUR | CNY | GBP | INR | MXN | PHP | |
|---|---|---|---|---|---|---|---|---|---|
| 1 USD = | 1.0000 | 1.4182 Inverse: 0.7051 | 1.3313 Inverse: 0.7512 | 0.8512 Inverse: 1.1749 | 6.7290 Inverse: 0.1486 | 0.7700 Inverse: 1.2987 | 74.2018 Inverse: 0.0135 | 21.2610 Inverse: 0.0470 | 48.4497 Inverse: 0.0206 |
| 1 AUD = | 0.7051 Inverse: 1.4182 | 1.0000 | 0.9387 Inverse: 1.0653 | 0.6002 Inverse: 1.6662 | 4.7448 Inverse: 0.2108 | 0.5429 Inverse: 1.8418 | 52.3222 Inverse: 0.0191 | 14.9918 Inverse: 0.0667 | 34.1635 Inverse: 0.0293 |
| 1 EUR = | 1.1749 Inverse: 0.8512 | 1.6662 Inverse: 0.6002 | 1.5640 Inverse: 0.6394 | 1.0000 | 7.9056 Inverse: 0.1265 | 0.9046 Inverse: 1.1054 | 87.1767 Inverse: 0.0115 | 24.9787 Inverse: 0.0400 | 56.9216 Inverse: 0.0176 |
| 1 GBP = | 1.2987 Inverse: 0.7700 | 1.8418 Inverse: 0.5429 | 1.7289 Inverse: 0.5784 | 1.1054 Inverse: 0.9046 | 8.7390 Inverse: 0.1144 | 1.0000 | 96.3669 Inverse: 0.0104 | 27.6119 Inverse: 0.0362 | 62.9223 Inverse: 0.0159 |
The British pound has a rich history and is the oldest actively traded currency on the foreign exchange (forex) market. The first exchange rate between the GBP and USD was published in The Times on August 10, 1866.
Since then, the GBP = USD currency pair has been affected by various factors. One of these factors is the interest rate between the UK’s Bank of England and the US’s Federal Reserve, which affects the value of currencies when compared to each other. For example, when the Fed intervenes on open market activities to strengthen the USD, the value of the GBP trade against the USD could decline.
From 2012 through 2016, the GBP has had an average worth of $1.35 to $1.75. There is some confusion to why the pound consistently trades stronger than the US dollar, taking into account the US’s more powerful economy over the UK. It turns out that the nominal value of a country’s currency and its economic strength have little to do with one another.
After Brexit — or Britain’s proposed exit from the European Union — in June 2016, the GBP has plummeted against the USD, reaching extreme lows of 1.20 against the US dollar.
However, this low is nothing compared to the 1.05 record low in February 1985. The GBP is expected to remain volatile during this period of the UK’s exit from the EU.
In December 1957, the GBP reached its highest ever against the dollar at 2.86. Since then, the GBP has been in a decline and hasn’t hit more than 2.0 in the last decade.
We’ve put together the annual average exchange rate for the British pound against the US dollar from 2007 to 2016.
| 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | |
|---|---|---|---|---|---|---|---|---|---|---|
| GBP = USD | 1.355673 | 1.528504 | 1.647701 | 1.564768 | 1.584877 | 1.604123 | 1.545893 | 1.565394 | 1.855443 | 2.001560 |
Here’s the monthly average exchange rate for the British pound over the past 12 months.
| Month | GBP = USD |
|---|---|
| Feb. 2017 | 1.243545 |
| Jan. 2017 | 1.234480 |
| Dec. 2016 | 1.247756 |
| Nov. 2016 | 1.245045 |
| Oct. 2016 | 1.235094 |
| Sept. 2016 | 1.314193 |
| Aug. 2016 | 1.308817 |
| July 2016 | 1.314450 |
| June 2016 | 1.418438 |
| May 2016 | 1.451924 |
| April 2016 | 1.430589 |
| March 2016 | 1.426061 |
In general, five factors affect how the British pound trades against the US dollar.
These elements play an important role in the value of the British pound. Countries with high levels of inflation see higher currency depreciation when compared with other currencies.
The Bank of England controls the supply of the British pound and promotes its stability. This means that whenever inflation is rising to a level that threatens stability of the British pound, the Bank of England will use its policy tools to control inflation.
Traders rely on public confidence about the economy. Whether the public is optimistic or pessimistic about the wealth and resources of the UK can be a key to detecting shifting trends in the economy.
The UK’s economic activity also affects currency value. The growth of the economy is measured by its gross domestic product (GDP). GDP reports include the preliminary GDP, the revised GDP and the final GDP — all estimating trends that will impact the economy.
The balance of payments is like a country’s accounting record of interaction with the rest of the world. It’s made up of three accounts, but only the current account affects exchange rates. This account reveals how much a country is exporting and importing, as well as the flow of income and transfer payments.
The GBP > USD currency pair makes up 85% of all currency cross-rate trades. It is the third most commonly traded pair, taking a 14% share of all daily trading volume.
The GBP = USD currency pair is often referred to by forex traders as trading the “cable,” a reference to the cable across the Atlantic used to transmit exchange rates in the 1800s. In London markets, it’s called “Betty” — cockney rhyming slang that mutated “cable” to “Betty Grable.”
No matter your reason for transferring money abroad, you want to make an informed decision.
When choosing a money transfer service for currency exchange, it’s best to look for an exchange rate that’s closest to the mid-market rate and comparable to historically low exchange rates within the past year.
The mid-market rate is what your money’s actually worth on the global market compared to another currency. It’s the midpoint between worldwide supply and demand for that currency — and the rate banks and transfer services use when they trade among themselves.
Use the mid-market rate as a baseline to compare against the rates provided by your bank or transfer service. With it, you’ll discover which companies offer the best rates.
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