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Pound fall: 'Should I get my dollars now or should I wait?'

A pound coin resting on a dollar

With the value of the pound falling dramatically since Brexit, a "flash crash" last week when the currency lost 6% of its value against the dollar, and news on Tuesday that the pound had fallen again, when would be a good time to change those pounds to dollars?

We received that question from Drew who is planning a trip to New York in December. He asked: "Should I get my cash now or should I wait? Will there be much change between now and then?"

Anthony Reuben, from BBC Reality Check, had this answer: "The BBC does not give financial advice, but here are a few things to bear in mind...

"The exchange rate between the pound and the dollar reflects the views of investors about the relative strengths of the two economies.

'Hedge your bets'

"Since the Brexit vote in June the pound has fallen about 18% against the dollar on the judgment that growth is likely to be stronger in the US than the UK and that UK interest rates are falling while the next movement in US rates is expected to be upwards.

"But it's always possible that something could happen to change that view - there is a presidential election in the US in November, for example. The outcome of that could make a considerable difference to the exchange rate.

"You do not necessarily have to put all your eggs in one basket - there is also the option to hedge your bets and buy half of your dollars now and half of them just before you go, as long as you are not going to be hit by extra charges for carrying out two transactions.

"It is always worth shopping around when buying currency - avoid buying your currency at the last minute at the airport. There are plenty of comparison sites online that will help you get the most dollars possible for your pounds, even if it is fewer than you would have got a few months ago."

Why Anthony wrote this article?

We asked readers to send in questions about the recent fall of the pound and rise of the FTSE 100.

Anthony chose Drew's question: "I'm planning on going to New York in December, should I get my cash now or wait? Will there be much change between now and then?"

Take a look at some of the other questions you've wanted us to answer:

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