Why is the the English pound higher than the U.S. dollar?

Question

This always seems to be the case and I was wondering why. I've asked everyone I know, including British friends, and nobody knows! I wanted to know why the English pound is stronger than, I think, any other currency in the world. What factors make this so? I know this might be a complicated question to answer but I would appreciate any responses. Thanks.

Answer 1

Currency valuation is a tricky subject. But just because the pound is worth more on a one to one exchange, that doesn't mean the British economy is better or Brit's live better. It is based more on national and international inflationary rates. Also average salaries and costs for goods and services.

The British economy is good, but not as good as the American Economy. But it is more stable than the rest of the EU under the Euro.

The numbers themselves don't actually mean that much, so don't put that much thought into it.

Answer 2

Because when these coins were made of gold, the pound was made heavier and worth 5 dollars. But gradually America became relatively richer and the pound lost value slowly. Now it is less than 2 dollars.

We hope you will keep Bush long enough in his job, so we go back to the pound of 5 dollars.

Answer 3

since the existence of the money is older to dollars and then the money in circulation is less in print than that of dollars , thisprinting is done by government by deficiet financing or similar structures so lesser pounds are in circulation then dollars