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About Harry Hayfield
Expertise
I`ve been interested in investing in the stock market since December 1990 and in recent months have been an avid viewer of Bloomberg and CNBC Television.

Experience
13 years of personal investing

You are here: Experts > Real Estate > Banking: U.S. > Financial Reports > currency

Topic: Financial Reports

Expert: Harry Hayfield
Date: 4/26/2006
Subject: currency

Question
what are the implications of a strong versus a weak pound. i don't understand!

Answer
A strong pound against a weak dollar means:

£1 = $2

British person pays £5 for a good
American person pays $10 for a good (but the company making the goods loses money on the currency conversion)

A weak pound against a strong dollar

£1 = 50c

British person pays £5 for a good
American person pays $2.50 for a good (but the company will need to raise US prices to maintain profits)

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