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Heading to the United States? Need to know how much an amount in sterling will buy in US dollars?
We can do the calculation for you using the latest exchange rate information.
Every currency has a foreign exchange identifier, known as its ‘forex ticker’. For sterling it is GBP, while for US dollars it is USD. When converting any two currencies one to the other, this is known as a forex ‘pair’.
GBP to USD (and vice versa) is a popular pair because of the strength and size of the two economies, the close economic ties, and the historical and cultural links between the two nations.
Here, you can track real-time GBP/USD rates and boost your knowledge with our calculator and interactive charts.
Disclaimer: Our currency calculator uses Open Exchange API to gather current exchange rates. We pull new rates every 5 minutes to ensure that the conversion you see is accurate and up to date. However, the rate you see here may not be the same rate that you’re offered by a bank or other financial institution.
How to invest using currency pairs
If you want to try to make money from currency trading (rather than just convert cash for your holiday spends), you need to know a little bit more about the mechanics of the process.
Just be aware that currency trading carries with it the risk of financial loss – you might not get back some or even all of your money.
As mentioned above, currency conversion involves ‘pairs’, such as GBP and USD. These pairs also facilitate trading – as a trader, you are backing one currency to rise or fall in value relative to the value of a chosen paired currency.
To distinguish the currencies in a pair, one is called the ‘base’ while the other is the ‘quote’.
When a trade is set up, the base is valued at 1, so with the GBP/USD pair, you might expect to see GBP/USD = 1.20, meaning £1 is worth $1.20.
If you as a trader think GBP is going to rise in value – or ‘strengthen’ – against the dollar (meaning it would then take more dollars to buy a pound, with the pair moving to, say, 1.24), then you buy the currency pair.
Taking this position is called ‘going long’.
If it’s your view that GBP will lose value – or ‘weaken’ – relative to the dollar (so you get fewer dollars for your pound, with the pair moving to, say, 1.18), then you sell the pair.
Taking this position is called ‘going short’.
If the movement in the currency pair aligns with your position, you will make a profit. But if the values of the pair move against you, you will make a loss.
You can read about other aspects of currency trading in this article.
Frequently Asked Question’s (FAQs)
How do I use the currency converter?
To use our currency conversion calculator to tell you how many dollars you will get for your pounds, simply enter the amount of sterling you wish to convert and make sure you’ve chosen the ticker ‘GBP’ as your starting currency and the ‘USD’ ticker as your ending currency.
We will then provide you with an estimate based on current rates.
Each currency has a ticker of its own, which you can find from the drop-down menus.
What is the best way to exchange money?
One of the worst places to exchange money when you’re travelling is an airport bureau de change – they charge some of the highest fees and often have uncompetitive exchange rates.
Why? Because they know you’re probably itching to get some currency for your destination, and you don’t really have another choice. They work on the basis that you’ll pay what they’re asking just to get the job done.
So, if you can, plan ahead and use a bank branch or a post office.
In larger branches, there will often be a walk-in service for popular currencies such as USD and euros.
It should also be possible to order in advance for collection from the branch, or you may be able to order your currency to be delivered to your home. Check for fees and possible limits on the amount you can order for delivery.
What if I need cash while I’m away?
If you need cash while abroad, you can withdraw funds from an ATM in the usual way. But if possible, take a card that does not charge a fee for international cash withdrawals, otherwise you may find yourself paying $2.50 for every $100 you take out.
Ideally, this should be a debit card. If you use a credit card, you’ll be charged interest on the amount withdrawn from the moment it comes out of the machine, regardless of whether you clear your balance within the interest-free period. And any fee would be slapped on top.
When should I exchange money?
It is difficult to know exactly when to exchange currency. Many factors can affect the value of the currency you’re planning to exchange, from economic events to the time of day.
One tactic is to monitor the conversion value on different days ahead of making the transaction so you get a good idea of what is happening between sterling and the dollar. If you see it swing dramatically away from the typical amount, you can buy or bide your time accordingly.
