Why has the Pound strengthened against the Euro?
September was a great month for exchange rates for those of you looking to buy property in the Eurozone. The cost of the single currency fell last week to its cheapest in over a year, making a typical €200,000 purchase over £7,000 cheaper than this time last year.
The reason for the Pound’s good fortune is largely down to interest rate expectations. The Bank of England considered raising UK borrowing costs (to curb inflation) at its recent meeting, and higher interest rates usually mean a stronger currency.
Coupled with political unrest in France and Spain, and concerns over Eurozone growth, the result has been an effective price cut for Brits buying in Europe – good news if you are considering heading out on a viewing trip!
Why has the US Dollar become more expensive?
Conversely, we have seen the US Dollar gaining in price recently, for similar reasons. The Federal Reserve raised the US benchmark interest rate, which has added to the USD’s momentum.
Despite ongoing tensions in the Middle East, the Dollar’s status as a ‘safe haven’ currency, combined with higher interest rates, has seen investors buy dollars, pushing up the price.
What could affect exchange rates in the month ahead?
With interest rates dominating currency movements, the next Bank of England meeting is on Thursday 5th November. The accompanying press conference will give clues as to the Bank’s plans and is often a mover of rates.
Before that, the monthly readings of inflation, economic growth (GDP) and unemployment will all be keenly watched – and, of course, we have the new Chancellor’s first Budget coming up at the end of October.
Check our A Place in the Sun Currency news page for the latest updates throughout the month.
Can I secure an exchange rate now for a property completion later in the year?
Yes – if you are in the process of buying a property and would like to lock in current exchange rates, A Place in the Sun Currency offers fixed exchange rates in advance.
This keeps your budget in Pounds and means you’re not at the mercy of exchange rate movements – it’s a popular way to reduce currency risk when you are buying overseas.
Contact the friendly team for more information and to find out if this might be a good option for you!
Speak to A Place in the Sun Currency
September exchange rate summary
| Currency pair | Change in September | Change in 2026 |
|---|---|---|
| GBP-EUR | +0.7% | +2.5% |
| GBP-USD | -2.3% | -1.8% |
