Boulder to London

For anyone who does international business or has been on an international holiday, you’re aware of exchange rates and foreign exchange (Fx) risk. In moving over to London, I largely ignored Fx risk and assumed that the dollar would remain weak into the foreseeable future and that a salary paid in Sterling was all upside. Unfortunately, my timing couldn’t have been worse. When I was hired and started working 8 weeks ago, 1 GBP bought roughly 2 greenbacks and about 1.3 Euros. I actually told one of my friends that my retirement strategy was going to be to earn Pounds and buy Dollars. Unfortunately, my dreams have been shattered as the pound has fallen 10% against the dollar and has reached an all-time low against the Euro. I guess this isn’t the end of the world, but London is expensive enough and I was definitely hoping for a little exchange rate upside on my vacations to Europe and back to the states. I guess I’ll have to keep working for a living!