The Pound Sterling (GBP) has been dropping against the Dollar (USD) for well over a year now, and this trend looks likely to continue. Currently, the GBP: USD exchange rate has dropped from $1.38 to $1.16.
The Euro has also been dropping against the USD, but less so than the GBP. It has, however, reached parity with the dollar. This makes the GBP: EUR exchange rate more favourable to USD buyers, as they will get more Euros for their Dollars.
What is causing the weak Pound?
The main cause of the weak Pound is Brexit. The UK’s vote to leave the European Union has caused uncertainty and instability, both for the UK economy and for businesses operating in the country. This has led to a loss of confidence in the Pound, causing it to drop in value.
The recent change in government has also caused the Pound to weaken. Lizz Truss’s government is seen as unstable, and this has led to a loss of confidence in the currency.
What does this mean for wine buyers?
In the short term, it means that wine imported from the European Union will be cheaper for American buyers. This is due to the fact that the Dollar is now worth more than both the Pound and the Euro.
For those looking to buy wine from England, however, things are not so rosy. The weak Pound means that English wines are now more expensive for American buyers.
So, if you’re looking to buy wine from Europe, now is a great time to do so! The weak Pound means that you’ll get more bang for your buck.