Great time for Brits to rent in Rome, as pound hits 21-month high
Are you a Brit planning to rent a property in Rome? If so, you’ll be pleased to know it’s a fantastic time to do so from a currency point of view, because the pound has reached 1.2662 against the euro, its highest in more than 21 months, or since September 5th 2012.
How will the pound’s rise benefit you when you rent in Rome?
If you plan to rent a property in Rome, what this means for you is that you’ll receive more euros when you exchange currencies than any time in almost 2 years. To be specific, were you to exchange £1,250, you’d receive +€160 more than if you’d rented in Rome back in March 2013, when the pound was weak, at just 1.1371. You could use the extra euros to rent a nicer property, or splash out in the Eternal City!
Why has the pound strengthened against the euro now?
Sterling has leapt against the euro, because the UK economy is flourishing right now. For instance, the UK economy is thought to have grown +0.9% between April and March, the fastest since before the financial crash, and more than any other major industrialised country.
Will the pound rise higher, further cutting the cost of Rome rentals?
It’s impossible to predict the foreign exchange market with total accuracy, but it’s certainly possible that the pound will rise higher. This is because, what with the UK economy doing so well, the Bank of England looks set to become the first major central bank since the financial crash to lift interest rates, forecast for later in 2014.
So in brief, 2014 is looking like a great time to rent in Rome from a currency point of view!
By Peter Lavelle at foreign exchange broker Pure FX