'Economic movements may favour sterling'

Brits using foreign exchange services to fund their lives abroad may be enjoying the benefits of a strengthening pound, it has emerged.

Last week figures showed that sterling increased by three per cent, meaning expats are more likely to find favourable exchange rates.

Sterling grew against the dollar reaching $1.64, while one euro bought around 85 pence at the close of last week, Reuters reports.

Despite the positive trend, experts have warned that the recession may still be felt for some time and this is reflected in recent fluctuations of the pound.

Gavin Friend, nabCapital currency strategist, told the news service: "Sterling has fallen against the dollar and it seems the market is pausing for the time being.

"We have come through the political turmoil and investors are able to concentrate more on economic fundamentals, which are moving further in favour of sterling."

A report by industry analyst Visiongain recently revealed that the international money transfer market is likely to perform well amid the economic downturn.

Click here to find out how much you can save with HiFX's Foreign Exchange services.