Sterling is continuing to put up a poor performance on the foreign exchange markets.

Analysts have suggested that unexpectedly low manufacturing data could be to blame for the currency's meagre show.

China's currency may be allowed to fluctuate with the foreign exchange markets following the release of new data.

The country's government had previously held exchange rates at an artificial low against the US dollar in a bid to ease pressures on China's exporters.

An investment expert has suggested that it is "inevitable" that sterling will become the main focus of foreign exchange markets in the run up to the general election.

Stuart Frost, co-fund manager of Threadneedle's Absolute Return Bond Fund, explained that the political pressure on the pound was likely to push it into the limelight.

Oil prices have been affected by the dollar's currency exchange rate, according to analysts.

A weak dollar, most likely brought about by the latest jobs data, has pushed the price of crude oil up to around $82.

The current low rate of currency exchange for sterling is having a positive effect on the British manufacturing industry, according to one Japanese businessman.

Masahiro Sakane, chairman of the world's second-largest manufacturer of heavy construction equipment, Komatsu, told the Daily Telegraph that a weak sterling is proving beneficial to industry.

Economic problems in Greece will not affect the value of the euro in the long run, it has been claimed.

The Mediterranean country is in the midst of a debt crisis which has affected the single currency, bringing it to a ten-month low against the US dollar earlier this week.

The likelihood of a hung parliament has once again pushed currency exchange into the centre of debate.

Both the Daily Telegraph and the Financial Times have commented on sterling's value today (March 3rd) as the polls show a hung parliament is looking 'probable'.

Sterling has dropped at its sharpest rate in nearly a year, according to foreign currency exchange rates.

The currency dropped against the dollar this morning (Monday March 1st), to reach $1.49.

Analysts expect sterling to remain 'pressured', despite the upward revision in the UK's gross domestic product (GDP) data.

The upward revision to show that the UK experienced 0.3 per cent growth in the fourth quarter of 2009 was not enough to alleviate traders' persistent worries concerning the strength of the country's economy.

The recent financial climate has had an effect of the trading of foreign exchange, according to a recent survey.

Conducted by ClientKnowledge for the CME Group derivatives market, the report revealed that investors and traders are thinking differently about foreign currency exchange following the global recession.

Poland is taking a closer look at its economic situation in a bid to stabilise its currency.

According to Bloomberg, the country's central bank is likely to announce that it will keep the interest rate at a record low of 3.5 per cent.

Sterling is not performing well in the currency exchange markets as the latest announcement from the governor of the Bank of England suggests that the UK economy remains unstable.

Speaking at the Treasury Committee, governor Mervyn King said that both the low Bank rate and the maintenance of the Bank's quantitative easing program at £200 billion were likely to continue for some time.

Sterling fell on the currency exchange markets yesterday (February 18th) following news that the government has been forced to borrow more money.

As tax receipts dropped off sharply, net borrowing in the UK was over £9 billion higher in January 2010 than it was a year previously.

Sterling's currency exchange value dipped against the dollar this morning (Wednesday 17th) following the unexpected rise in unemployment reported by the Office for National Statistics (ONS).

However, analysts suspect that the Bank of England's decision to halt quantitative easing has prevented the currency from falling further as some faith in the UK's economic recovery remains.

Credit rating agency Moody's has issued an assurance that the possible downgrading of Greece's currency does not mean a euro meltdown will follow.

There have been fears that the Mediterranean country's financial worries would have a substantial affect on the single currency zone.

Sterling's depreciation has put pressure on inflation in the UK, according to the latest report from the Bank of England.

As sterling fell against the currencies of many of Britain's trade partners, the cost of importing items to the UK rose accordingly.

Traders are making record bets that the value of the euro will fall against that of the US dollar.

A total of almost £5 billion has been put against the currency.

Analysts have speculated that the high bets have arisen due to the euro's unstable position.

Sterling levelled out against the dollar as the Bank of England signalled a halt to quantitative easing (QE).

As expected, the Bank announced today (February 4th) that it was pausing quantitative easing.

The lending rate has been maintained at 0.5 per cent and the asset purchase programme also rests at £200 billion.

Changes to foreign currency and economic policy have wreaked 'chaos' in North Korean currency markets and daily life.

In November 2009, national policy in the country changed to prevent the use of foreign currency in the country.

The currency exchange markets have seen the Swiss franc rise hastily against the euro.

As Greece continues to experience fiscal problems the euro has been dragged down against other European currencies.

Sterling has fallen against the euro amid growing political concerns.

A recent opinion poll carried out by ComRes for the Independent has found that a hung parliament result in the general election in June is looking increasingly likely.

Sterling vs. dollar currency exchange rates have fallen following the release of data concerning the US economy.

The pound dropped from a steady rate of $1.615 to the pound down to a day's low of $1.61 at 13:00GMT today (January 29th).

This coincided with the release of economic growth data from the US.

Figures from the US Commerce Department showed a growth rate of 5.7 per cent in the economy during the fourth quarter of 2009.

The increase was higher than expected - economists from a survey by MarketWatch had previously suggested a growth of 5.4 per cent, while Reuters thought the number could have been as low as 4.6 per cent.

Despite the positive end to the year for the dollar, 2009 still saw the US economy decline at the largest rate since 1946 with an overall fall of 2.4 per cent across the year.

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

Posted by Eleanor Ward

Sterling vs. dollar currency exchange rates have fallen following the release of data concerning the US economy.

The pound dropped from a steady rate of $1.615 to the pound down to a day's low of $1.61 at 13:00GMT today (January 29th).

This coincided with the release of economic growth data from the US.

Figures from the US Commerce Department showed a growth rate of 5.7 per cent in the economy during the fourth quarter of 2009.

The increase was higher than expected - economists from a survey by MarketWatch had previously suggested a growth of 5.4 per cent, while Reuters thought the number could have been as low as 4.6 per cent.

Despite the positive end to the year for the dollar, 2009 still saw the US economy decline at the largest rate since 1946 with an overall fall of 2.4 per cent across the year.

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

Posted by Eleanor Ward

Foreign currency exchange markets are particularly volatile at the moment, a report from HSBC has revealed.

The main source of volatility is coming from the US, where the Federal Reserve is facing a massive overhaul bringing with it uncertainty in trading.

Foreign currency exchange markets are particularly volatile at the moment, a report from HSBC has revealed.

The main source of volatility is coming from the US, where the Federal Reserve is facing a massive overhaul bringing with it uncertainty in trading.

Sterling fell rapidly yesterday (Tuesday January 26th) following a lower than expected growth in gross domestic product (GDP) in the UK.

At the time of the release of the figures, around 09:30GMT, sterling plummeted from $1.625 to the pound down to $1.61.

People looking to make an international money transfer and invest in emerging markets abroad, could be interested to read Ignis Management's predictions for 2010.

In the company's publication, Hexam, Ignis has described China as one of the best emerging economies for investment.

People looking to make an international money transfer and invest in emerging markets abroad, could be interested to read Ignis Management's predictions for 2010.

In the company's publication, Hexam, Ignis has described China as one of the best emerging economies for investment.

Sterling's exchange rate enjoyed a brief period of good trading against the dollar as the latest UK unemployment figures showed that benefit claims in December fell by 15,200.

The pound reached a high against the dollar of $1.63 to the pound at around 11:00GMT this morning (January 20th).

Currency exchange markets could be all change for sterling as one of the UK's largest money management firms has warned that the pound's AAA rating is "extremely vulnerable".

In a note issued to investors, Standard Life's investment director Paul Laing, blamed the risky state of the currency on a "highly toxic" mix of economics and politics.

Sterling has reached a four-month-high against the euro and held gains on the dollar.

One pound traded at a high of €1.134 today (January 15th) at 14:00GMT as negative reports concerning Greece's debt situation dragged the euro down.

Sterling secured its position against the dollar this morning (January 14th) when it again continued its four-week high of just over $1.63 to the pound at 13:00GMT.

The currency also traded well against the euro, with one pound buying €1.127 at 16:00GMT.

Sterling reached its highest trading figures against the dollar in nearly four weeks, trading at a high of $1.63 dollars to the pound at midday today (January 13th).

The pound has also performed well against the euro with a high of one pound buying almost €1.123.

The pound's worth has been propped up by the latest positive data concerning the UK's trade deficit and housing market.

Released this morning, data from the Office for National Statistics showed that the nation's deficit on trade shrunk towards the end of 2009.

Foreign exchange rates and currency markets are likely to be affected this week by the release of jobs data.

The publication of yesterday's (January 6th) ADP employment data has blown a "bit of caution to the wind" for investors, according to a market analyst from City Index.

The pound has started the year on a low and looks likely to continue that way for now according to currency trader City Index.

Sterling began the year "underperforming", according to Neil Looker, City Index's chief foreign exchange dealer.

The pound has started the year on a low and looks likely to continue that way for now according to currency trader City Index.

Sterling began the year "underperforming", according to Neil Looker, City Index's chief foreign exchange dealer.

The debate concerning Britain's bankers has reignited suspicion that many banks may move their money and their staff abroad.

In view of heavy UK tax burdens, European countries, such as Switzerland, have been considered by big name financial companies as alternative options to Britain and London in particular.

The debate concerning Britain's bankers has reignited suspicion that many banks may move their money and their staff abroad.

In view of heavy UK tax burdens, European countries, such as Switzerland, have been considered by big name financial companies as alternative options to Britain and London in particular.

Sterling has risen in value against the dollar this morning peaking close to $1.625.

The rise comes after the British manufacturing sector reported good business which, alongside improved mortgage approval rates, has increased faith in the UK economy.

The US dollar index fell 0.4 per cent to 77.581 today (December 31st).

Reports in the Financial Times (FT), attribute the "broad" decline to "extremely light" trade as Tokyo and many European countries take holiday ahead of the New Year celebrations.

A total of £82.5 billion was raised through the issue of new shares on the London Stock Exchange this year.

This is an increase of 16 per cent compared to the total raised on the exchange in 2008, a statement revealed.

More than 60 new issues took place on the exchange this year, of which 18 were IPOs, despite economic conditions deteriorating at several points in the year.

Britons looking to move abroad and earn a wage in a foreign currency could be encouraged by news that global employment markets are improving.

The Asia Pacific region is the strongest employment area with hiring rates similar to those from before the recession, according to a survey from employment service provider Manpower.

Britons looking to move abroad and earn a wage in a foreign currency could be encouraged by news that global employment markets are improving.

The Asia Pacific region is the strongest employment area with hiring rates similar to those from before the recession, according to a survey from employment service provider Manpower.

Investors looking to make money abroad have been advised to take a fresh look at the emerging markets.

Independent financial advisers polled by JP Morgan were 61 per cent in favour of investing in the emerging markets, particularly Asia.

Investors looking to make money abroad have been advised to take a fresh look at the emerging markets.

Independent financial advisers polled by JP Morgan were 61 per cent in favour of investing in the emerging markets, particularly Asia.

The UK looks set to continue along a slow road to fiscal recovery, according to a leading business association.

A report from the Confederation of British Industry (CBI) predicted that recovery in the UK will "be weak at 0.3 per cent" in the first two quarters of 2010 as consumer confidence in spending rises gently.

A leading economist has said that a "double dip recession" looks unlikely after a recent financial report suggested confidence was growing among UK businesses.

The positive financial report from Lloyd's TSB found rising confidence in sales, orders and profits amongst UK businesses, a possible sign that the economy and Sterling exchange rates could be on the road to recovery in 2010.

Foreign currency exchange prospects looked strong for sterling as the pound rose sharply against the euro on Wednesday (16th December).

The exchange rate reached a high of 1.126 euros to the pound whilst rates against the dollar also showed a slow improvement.

Brits who own property abroad have been urged to take a "cautious approach" to currency exchange due to unpredictable markets.

Mark Bodega, director of currency specialists HiFX, issued the advice after the company's global currency report revealed that 2009 has been a "volatile year for the world's currency markets".

Brits who own property abroad have been urged to take a "cautious approach" to currency exchange due to unpredictable markets.

Mark Bodega, director of currency specialists HiFX, issued the advice after the company's global currency report revealed that 2009 has been a "volatile year for the world's currency markets".

Brits who own property abroad have been urged to take a "cautious approach" to currency exchange due to unpredictable markets.

Mark Bodega, director of currency specialists HiFX, issued the advice after the company's global currency report revealed that 2009 has been a "volatile year for the world's currency markets".

The euro looks set to continue to gain strength, as the currency rose 0.76 per cent against the dollar at 9.55am today (December 15th).

A continued increase could encourage Britons to consider expatriating to European destinations such as France and Germany to take advantage of the relative stability of the currency.

The euro looks set to continue to gain strength, as the currency rose 0.76 per cent against the dollar at 9.55am today (December 15th).

A continued increase could encourage Britons to consider expatriating to European destinations such as France and Germany to take advantage of the relative stability of the currency.

Foreign exchange prospects are looking up for the pound due to the currency holding a steady exchange rate against the euro over recent days.

Despite small negative changes and a drop against the dollar, sterling was trading at 1.10730 against the euro on the morning of December 14th.

Sterling has reached a one-month low against the euro but strengthened against the dollar on the foreign money exchanges today (November 30th).

The pound dropped to just over €1.095 during morning trading, with many investors nervous over news of Dubai's debt problems.

The value of sterling on the currency exchanges is likely to be markedly affected by the release of several reports this week, experts have speculated.

Minutes from the Bank of England's (BoE's) last rate-setting meeting, retail sales data and new inflation figures are likely to influence whether or not the pound weakens or strengthens, Reuters reported.

Expats who make international payments to their foreign-based businesses may welcome indications that the European Union (EU) economy is set to grow.

Figures due to be released today (November 13th) are forecast to reflect the area's strengthening financial market, Agence France Presse reports.

Expats living in Norway may soon need to make bigger money transfers to pay off loans held in the country, it has emerged.

Norges Bank recently announced interest rates will rise by 0.25 per cent to 1.5 per cent.

Expats making money transfers to foreign-based loans may find the latest foreign exchange trading figures have a positive impact on their bank accounts.

The pound yesterday rose to its highest level this month against the euro and the dollar, meaning Brits living in the US and on the continent are likely to see their money go further.

Investors will continue to make money transfers to Romania amid the recession, according to industry experts.

Figures from business development agency Ubifrance recently revealed that following money transfers to the region, several French companies generated more than €1 billion (£9.2 million) in turnover, Agence France-Presse reports.

Investors will continue to make money transfers to Romania amid the recession, according to industry experts.

Figures from business development agency Ubifrance recently revealed that following money transfers to the region, several French companies generated more than €1 billion (£9.2 million) in turnover, Agence France-Presse reports.

Investors are becoming more confident in making money transfers to overseas property markets, according to industry experts.

Real estate website Rightmove.co.uk recently made the claim following the publication of figures from mortgage specialist Conti.

Brits heading overseas may get better foreign exchange trading deals if they avoid high street currency providers, industry experts suggest.

Online comparison service moneysupermarket.com recently highlighted the importance of searching for favourable exchange rates due to the strengthening euro.

The US dollar slipped against a range of currencies in foreign exchange trading on Friday (September 25th) following the release of a draft communique from the G20 leaders stating measures to stimulate the global economy will remain in place, reports suggest.

However, the dollar was not the only currency to drop in foreign exchange trading, as sterling dropped to new lows against the dollar and the euro, news agency Reuters reports.

The US dollar slipped against a range of currencies in foreign exchange trading on Friday (September 25th) following the release of a draft communique from the G20 leaders stating measures to stimulate the global economy will remain in place, reports suggest.

However, the dollar was not the only currency to drop in foreign exchange trading, as sterling dropped to new lows against the dollar and the euro, news agency Reuters reports.

The US dollar hit back against the euro in foreign exchange trading today, but then once again fell in value as other currencies saw gains.

Belief among traders that the Federal Reserve will keep interest rates low for a long time kept investors away from the greenback.

The US dollar slipped in value in foreign exchange trading today (September 23rd) as traders awaited the outcome of the latest Federal Reserve meeting.

Traders also remained cautious ahead of the Pittsburgh summit of G20 leaders.

The pound gained in trading on the foreign exchange markets today (September 23rd) following the release of minutes from this month's Bank of England Monetary Policy Committee meeting.

Minutes indicating that the committee members were unanimous in their decision to not make any further changes to the programme of quantitative easing helped push the pound up, although government bonds fell, the Bloomberg news agency reports.

The US dollar has risen in value in foreign exchange trading today (Monday September 21st), on the back of a new report showing continued growth in the country’s economy.

Trading of the dollar rose against the yen and against the dollar index, which tracks the currency against six of the country’s major trading partners.

The dollar remained subdued on foreign exchange markets yesterday as investors continued to move away from the greenback in favour of riskier assets.

Continued evidence that a global economic recovery is beginning to develop helped to buoy confidence among investors.

The dollar slipped to new lows for the year as investors opted for international money transfers to other currencies.

As the dollar continued to drop, the euro hovered near highs for the year.

Uncertainty remains in regard to the UK economy, the governor of the Bank of England said.

Speaking to parliament's Treasury committee, Mervyn King said: "The strength and sustainability of the recovery is highly uncertain."

Following his comments, the pound pared gains against the dollar, the Bloomberg news agency reports.

The dollar has fallen to is lowest level against the euro in trading today, on the back of low borrowing in the US.

As a result, investors opted to sell the currency in favour of assets with higher returns, Bloomberg reports.

According to the news agency, earlier gains following concerns over a US-China tariff dispute were wiped out as trading continued.

Investors may begin to consider Japan as a location for their overseas business ventures following the release of new figures.

The country's economy increased by 0.9 per cent in the second quarter, meaning it has successfully climbed out of recession, the BBC reports.

Investors may begin to consider Japan as a location for their overseas business ventures following the release of new figures.

The country's economy increased by 0.9 per cent in the second quarter, meaning it has successfully climbed out of recession, the BBC reports.

UK emigrants who transfer money to assets in France and Germany may start to see a greater return on their investments, new research indicates.

Figures from economy monitor Eurostat recently revealed that the countries emerged from the recession in the second quarter.

Falling unemployment rates in the US may indicate that the country's economy is strengthening, according to industry experts.

Recent research by the US Labour Department reveals that the number of people out of work in the region fell in July, which may interest Brits who are considering transferring money to assets in the country.

Investors who make international payments to purchase insurance products are remaining cautious, according to industry experts.

Bank International Netherlands Group (ING) recently revealed that it has seen a €71 million (£61.1 million) profit in the three months preceding June.

British investors may start to see a greater return on their Europe-based assets, according to a new survey.

Research by financial analyst Markit reveals that July saw an increase in activity in the manufacturing sector, which may be of interest to expats making international payments to fund their companies.

Investors buying riskier assets following rumours of the beginning of an economic recovery, caused the dollar to drop in value today.

Reports suggest that improved corporate earnings and US unemployment figures have encouraged demand for stocks and higher-risk products, rather than the safer dollar.

Britons using foreign exchange services to buy overseas shares are urged to be cautious with their investments, it has emerged.

Finance expert Bloomberg recently noted that increasing shares prices in emerging markets may soon fall.

Britons making foreign exchange transactions are likely to find their money goes further in the US and eurozone thanks to a strengthening pound.

Figures published by the Herald recently revealed that sterling grew significantly against the dollar and euro.

UK entrepreneurs transferring money to overseas investments may be able to snap up premises at affordable rates for some time, according to industry experts.

Commercial property consultants Knight Frank recently explained that the prices of business premises in Europe are likely to fall further.

Investors should look to Egypt when making international money transfers, according to industry experts.

Property Abroad recently reported that the country could prove lucrative for Brits seeking overseas investment opportunities.

Julie Liddle, emerging markets researcher for the portal, explained that Egypt's economy has been boosted by holidaymakers.

Swiss-registered investors redirected their capital flows from banks to money market funds during February, new foreign currency research suggests.

According to a report by Lipper, total cash inflows constituted 4.6 billion Swiss francs (£2.75 billion), which helped money market funds to become the second biggest form of assets after bonds.

Britons looking to invest in a foreign property but concerned about foreign exchange rates might be as well to consider Turkey as a potential destination.

According to foreign property firm Atlas International, many investors are shifting from their markets and turning to the country, where they can make the most of the foreign exchange rate and get more for their money.

A number of outcomes are possible for the economy following the Bank of England's decision to reduce the interest rate and stimulate quantitative easing, according to international money transfer service HiFX.

The bank announced an asset purchase programme of £75 billion to allow for quantitative easing as it cut the interest rate.

Britons who were overcharged in capital gains tax (CGT) after selling their Spanish property could be entitled to reclaim more than £8 million.

A British couple have become the first claimants to successfully battle the Spanish government for their tax overpayment, with international money transfer firm HiFX stating that the 600 people claiming their tax back could be entitled to a collective £8.4 million.

Some foreign investors are likely to be attracted to properties in France since the emergence of 100 per cent mortgages, an expert has claimed.

However, John Reilly, managing director at BuyAbroad.com, has questioned whether this is a good thing.

Consumers planning to invest in foreign property in Brazil might want to take a trip to the country to view potential offerings while it is cheap to do so.

According to travel specialists Journey Latin America, the region's declining currency over the past year has led to a rise in tourism in Brazil.

In news that may be of interest to Britons planning to make international money transfers, the Travel Association (ABTA) has teamed up with London Metropolitan Police and other organisations to launch a new anti-fraud forum.

PROFiT - Prevent Fraud in Travel - has been set up to reduce fraud within the industry, which sets the market back by more than £10 million each year.

Foreign exchange experts HiFX have launched a new tool that aims to reduce the cost of international money transfers by £1.65 billion.

The annual saving could be made by Britons looking for the best rates to get the most from their pound, with the service being the first to show real-time rates as they move.

A hedging strategy could provide more security for people who are looking to transfer money between countries, it has been claimed.

The current foreign exchange market is very volatile and there have been many unprecedented moves, explained head of private clients at World First Elisabeth Dobson.

Consumers need to exercise caution when undertaking online transactions such as international money transfers, a fraud watchdog said today.

Cifas revealed results of new research carried out by Get Safe Online, which found that 23 per cent of Britons had either experienced a phishing scam - where a mocked-up email is used to extract personal data – or been friends with or related to someone who had in the last year.

The economy in the UK will "decline through all of 2009", it has been claimed.

Chief UK and European economist at IHS Global Insight Howard Archer explained the 1.5 per cent contraction the country saw in the final quarter of 2008 will possibly be the "deepest".

Sterling is "still looking oversold and undervalued", it has been claimed.

Yesterday's decision to cut interest rates to one per cent was widely anticipated and therefore had "no negative impact" on British money, explained currency strategist at HiFX Marc Cogliatti.

The weakness of the global banking and financial system means the supply of credit remains constrained, it was reported today.

These comments, from the Bank of England, came after it announced it would cut interest rates by 0.5 per cent to one per cent.

There is a case for "cautious optimism" when it comes to the housing market, it has been suggested.

Content editor of FindaProperty Michael O'Flynn explained there have recently been an increasing number of enquiries from people interested in purchasing somewhere to live.

The Bank of England should learn from Japan when it comes to quantitative easing measures, it has been suggested.

Economist at Defaqto Michael Baxter explained that many people believe the Asian country took too long over the decision to cut interest rates to zero.

The current financial downturn is a result of 14 years of "binge borrowing" and the nation is now "addicted to debt", it has been claimed.

It is right for the government to try and act on the situation but cutting off cash flow and making people go "cold turkey" is not fair, explained head of personal finance at money website Fool David Kuo.

Interest rates could fall to zero and remain there through until 2010, it has been suggested.

These are the views of senior economist at the Centre for Economics and Business Research (CEBR) Charles Davis. He stated it is likely for rates to fall further and remain low because the country is now officially in recession.

The current financial downturn is a result of 14 years of "binge borrowing" and the nation is now "addicted to debt", it has been claimed.

It is right for the government to try and act on the situation but cutting off cash flow and making people go "cold turkey" is not fair, explained head of personal finance at money website Fool David Kuo.

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.

Foreign exchange rates are making Korea a "great value for money" destination, it has been claimed.

The strength of the sterling against the won at the moment should make it an affordable destination for Brits, explained marketing manager at the Korean Tourism Organisation Michael Michael.

Overseas card fraud has increased because magnetic strips can be cloned and used in countries that have not yet implemented chip and pin technology, it has been suggested.

Thanks to recent changes in the UK that require people to use a personal identity number, crimes related to this form of payment have decreased over recent years, explained Tim Pie from HSBC.

It is a good idea to arm yourself with a few different forms of payment when abroad, it has been suggested.

People travelling to another country should inform their bank before they leave so it can identify any unusual activity, explained spokesperson from HSBC Tim Pie.

The weak pound has made a strong impact on where Brits are intending to take their jolly jaunts this year, a new survey has revealed.

The study, by online travel agent Just the Flight, found that 40 per cent said the sterling's strength would have a "significant" influence on where they travel.

Inflation is "a very bad thing" and the fact that it has decreased is a positive step, one expert has suggested.

Deflation can be a threat because it can cause "sharp monetary contraction" which some analysts deem as a risk, explained professor of economics at the Cass Business School Geoffrey Wood.

Yesterday's announcement that the Royal Bank of Scotland's (RBS) shares had fallen 70 per cent has "completely overshadowed" the bank bailout plan, an industry expert has suggested.

Despite receiving £32 billion in funds from the government and other sources, RBS' capitalisation is now less than £5 billion, explained senior currency strategist at HiFX Bob Munro.

Holidaymakers are aware that the current foreign exchange rates mean certain destinations, such as Brazil, may be more affordable, it has been suggested.

Brazil's currency has suffered recently because of the problems in United States of America as they usually do a lot of trade with them, explained Suren Thiru, economist at the Halifax.

Consumers have been advised that now may be an ideal time to start paying down any debts instead of trying to save money.

David Kuo is head of personal finance at Fool.co.uk and said due to the current economic climate, people may benefit more if they transfer money to pay off all, or part of, a loan.

The UK may join the euro if the "right economic conditions" are met, according to Europe minister Caroline Flint.

Speaking to the Metro, Ms Flint said a decision would be made based on a number of factors.

"We have identified five tests that have to be met - convergence with other European economies, flexibility, impact on investment, the impact on the financial services industry and growth stability and employment," she explained, adding so far these criteria have not yet been met.

Fluctuating foreign exchange rates and the recent decline in sterling against the euro and US dollar is changing tourists' travel habits, a new report has found.

One country where Brits might be able to get more for their money is the Seychelles, where 171,000 UK residents visited in 2007, according to a survey by the Halifax.

Brits who are selling an overseas property need to ensure they consider the tax implications in the UK, it has been suggested.

Some people with a second home may be looking to raise extra funds at the moment by putting it onto the market, explained director of personal tax at accountancy firm PKF.

Brits living abroad for a sustained period of time need to ensure they not only have travel cover but also health and home insurance, it has been suggested.

Opening an offshore bank account could be one way of receiving a certain level of insurance, said Shelter Offshore.

News that the interest rate has not been slashed as much as feared will be a "welcome relief" to businesses that trade internationally, an industry expert has stated.

The comments, from currency strategist Marc Cogliatti at the foreign exchange specialist HiFX, came after the monetary policy committee (MPC) announced that rates will be cut 0.5 per cent to 1.5 per cent.

If interest rates are cut to nearly zero today, then this could weaken the pound even further, it has been suggested.

The volatile financial market is forcing banks to take action but slashing rates dramatically could cause global investors to wonder why such action had to be taken, explained senior currency strategist at HiFX Chris Towner.

The future interest rate will depend on what happens in the eurozone, an economist has suggested.

Over the next six months, the British rate of interest will decrease to around 0.5 per cent, predicted economist at Defaqto Michael Baxter.

The year ahead looks "gloomy" for the value of the pound against the euro, it has been suggested.

In the UK, the economic deterioration is picking up pace and sterling traditionally struggles at times like this, explained HiFX.

Having the right bank account to suit the individual's needs when moving abroad is essential, it has been suggested.

It can help make sure that the most is achieved from finances and could provide the account holder with good returns, explained Alliance and Leicester Limited (ALIL).

Those with a second home abroad, which they have perhaps bought using an international money transfer system, might be exempt from inheritance tax if they let it out to holidaymakers, an industry expert has said.

A lot of properties abroad can be very valuable and can be owned by wealthy people, explained DHC Accounting.

The Brazilian economy is not suffering quite as much as the UK, USA, Europe and Japan due to the fact that it was "protected" in recent months, it has been suggested.

Paulo Wrobel, from the commercial section at the Brazilian Embassy in London, said the country - along with other emerging markets such as China - was "a bit protected earlier ... when the credit crunch started, because really the financial systems were not affected."

The pound has weakened further against the euro, moving closer to parity with the continental currency for the first time amid bets that the Bank of England will lower the base rate of interest from its current level of two per cent to help the economy.

Additionally, the sterling's money exchange rate fell against the dollar after John Gieve, the deputy governor of the Bank, told the BBC that policymakers require new instruments in order to tackle the current economic slowdown.

While a drop in the UK's inflation is positive for consumers as the cost of goods drops, there is a danger if the country enters recession, it has been suggested.

Darren Cook, a spokesperson for Moneyfacts, said that if inflation drops too low, it will cause deflation to occur.

The US Federal Reserve's "dramatic economic action" of reducing the country's base rate of interest to between zero and 0.25 per cent may have to be followed by the Bank of England, it has been suggested.

Jonathan Loynes, chief European economist at research consultancy Capital Economics, states the fact that the Fed had to make such a move is an indication that the UK may have to consider "similar sorts of policies".

The dollar has fallen against other currencies after the US Federal Reserve cut its key interest rate to a record low in recent days.

Some sector analysts expected the Fed to reduce the base rate of interest to 0.5 per cent. In fact, it was reduced to 0.25 per cent.

As the pound approaches parity in value with the euro, the "winners and losers" have been identified.

Tourism is identified as a winner, with the favourable foreign money exchange meaning that London has not been cheaper for visitors from the continent in at least two decades, an article in the Evening Standard notes.

The European Central Bank (ECB) will keep its options open regarding interest rates until its next meeting, which is set to take place in January, it has been asserted.

Michael Bonello, a member of the ECB's Governing Council, made his comments when asked by reporters whether his opinion corresponded with market expectations of a 50 basis point reduction in the benchmark lending rate in January.

The sterling may begin to improve now the base rate of interest has been cut, but it is likely to underperform for the rest of the year, according to a strategist at foreign currency exchange service provider HiFX.

Against the dollar (1.4500), the UK's currency has been at its lowest rate for six years and it has been at an all time low against the euro (1.1500).

Volatile exchange rates caused by the global economic slowdown mean that Seoul is no longer one of the most expensive locations for expatriates, according to a new study.

Carried out by ECA International, the survey compared a total of 125 services and consumer goods commonly purchased by expats in more than 370 locations around the world.

There is a real risk of actual deflation next year, according to the Centre for Economics and Business Research (CEBR).

Charles Davis, an economist for the organisation, made his comments after the Bank of England today announced a one percentage point reduction in the base rate of interest, taking it from three per cent to two per cent.

People are beginning to think more seriously about their spending habits, according to Alliance and Leicester.

Hetal Parmar, manager for savings at the financial services provider, states they are thinking more about ensuring they have money set aside for "a rainy day".

Conditions are ripe for interest rate cuts by the European Central Bank (ECB), according to Jose Manuel Barroso.

The president of the European commission made his comments on Sunday on RTL radio.

Declining to comment on the scale of a potential rate cut, he said: "It is true that now the conditions are there for a drop in interest rates."