Airlines will "struggle to forecast ? exposure"

Airlines will "struggle to forecast their overall exposure", it has been claimed.

Most British companies that deal with an American market will have felt the effects of the recent foreign exchange rates, explained money conversion specialist HiFX.

Over the past 12 months there has been a 33.8 per cent change between the sterling and dollar, it continued.

Companies, such as airlines, will be wary about both over and under hedging. On one hand, demand is likely to drop, but on the other, they do not want to be completely influenced by the market.

HiFX said it is now more important than ever to get business and financial plans spot on.

"FX risk management and FX strategic planning are crucial issues for any company."

The fluctuating market, along with a range of conflicting views, means that it can be a difficult time to determine what the best line of action is - but with the right guidance a solution can be found, it concluded.

According to HiFX, as of January 28th 2009 at 08:45 GMT the pound was trading against the dollar at 1.43.