Is the pound worth more then the U.S dollar today?

Question

How can that happen?

How does the dollar lose value

just want to learn something that the government education system left out

Answer 1

Yes. It is nearly twice as powerful. But this can be a good thing AND a bad thing all at the same time.

Much of the weakness in the Dollar stem's from irresponsible fiscal policy (or spending more than is taken in from taxes during a time when it is not appropriate to do so).

A weak Dollar makes it easier (although it is still very difficult) for the US to sell things to other countries. This will improve our trade deficit. On the other hand it is really hard for American's to travel to the UK.

The Dollar to Pound relationship is a very interesing one to explore because nominal prices in each country are almost identical. In other words, one pound in London will get you roughly the same amount of stuff that one dollar will in New York.

Answer 2

Many people have these misconceptions about currencies -- that different countries' currencies should for some reason be equally valued units; or that the US dollar was in the past worth more than any other country's currency.

NOT true. The Pound and Dollar have never been equal, and the pound has ALWAYS been greater than a dollar. They are separate currencies with different origins. There is no reason to expect any particular relationship between them. The pound was created in the 1520s in England, defined as a certain amount of silver. The Dollar was created in the 1790s in America, defined as a certain amount of gold. Things have evolved since then, values have gone up and down and up and down, and neither are any longer tied to metals.

It is only a historical accident that their values are even as close as they are, about 2-to-1. It could've have been like the US Dollar to Japanese Yen, which is about 100-to-1. The values evolved from totally arbitrary history.

Answer 3

The pound has always worth more than the dollar. It use to be worth more than $5. Does it really matter. After WW2, the English economy has spiraled down hill. Does that make you feel better. Just compare the value of a schilling to a dollar. That might solve your apprehension

Answer 4

Definitely.

A pound is worth almost twice as much as a dollar.

It used to be only about a dollar and a half (four or so years ago) but since American money is quickly losing value, and since the pound is rather more stable, the pound is quickly becoming much more valuable than the dollar.

Answer 5

The question is the pound worth more than the US dollar today. Yes it is - the purchasing power of the pound in the US at nearly 2:1 means I can buy more goods form the US than I can buy here in England with it.

For example if a nipped out for a big mac in the UK it would cost me £2, but if i nipped out for a big mac in america it would cost me $2.35. That means I can buy a whole lot more big macs, nearly 2 big macs in america with my money, than here in england.

Answer 6

well, a dollar loses value as there is more and more of it. With all of the international trade going on (and the US trade deficit) more and more dollars are getting into the hands of foreigners, therefore the devaluation.

Answer 7

Yes. The British pound is worth $1.958US. There a many variables which would cause these types of conditions (whether temporary or long term).

Answer 8

About $48 U.S. dollars. Google "currency converter calculator".

Answer 9

the pound has always been worth more than the US dollar. how can it happen? well the us dollar has nothing to back it. the us dollar use to be backed by the gold reserve. then nixion (I think?) took us off the gold standard and now the US dollar is more like a IOU as theres nothing to back it.

Answer 10

a dollar weighs almost noting you would need a lot to equal a pound.