Currency watch: pound reaches nine-month high against shutdown dollar

Sterling reached a nine-month high against the US dollar this week as the US government’s shutdown impacted the global currency markets.

A political stalemate between Democrats and Republicans over the US budget saw the government enter shutdown this week. The dispute saw the Republican-led House of Representatives insist on postponing President Obama’s healthcare proposals as part of approving a new budget bill. The result caused the government to shut down for the first time in 17 years, sending uncertainty across the country.

As hundreds of thousands of federal employees are faced with unpaid leave, the US Dollar began to fall on Tuesday. Indeed, the pound to US dollar exchange reached a nine-month high, report Future Currency Forecast, rallying by 0.35 cents.

The dollar, meanwhile, has fallen to nearly an eight-month low, while the euro has also strengthened against the dollar to its highest level since February 2013.

As the US stalemate continues, though, the shockwaves are starting to spread into other currencies. Indeed, concerns that the UK’s recovery may be impacted by the situation has seen sterling slide, reports The Independent today. At the same time, the euro rose against the pound by 84p.

Nonetheless, with the USA accounting for more than one in four enquiries on TheMoveChannel.com last month, for those confident to invest in the growing US market, the weakening currency rates make American real estate more affordable than ever.