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Why should your American firm invest in the UK right now?

The British pound has fallen significantly in value against the US dollar in the past weeks and this means you and your American firm should be considering the benefits of investing within the UK.

On 7 September, the pound equated to $1.14 – the lowest rate against the dollar since 1985 –  but it managed to rise to $1.17 on 12 September and has been fluctuating since.

Though the 15 per cent drop against the dollar this year is a concern for the British economy, international companies should take advantage of this opportunity and look more seriously into investments that they may have been considering recently.

We will outline the reasons why it might be the right time to invest in the UK below.

Get more for your dollar

The main, and arguably most important reason, is that the value of the capital you hold and intend to invest will currently be higher in pounds than it would have been last year giving you greater buying power.

Another benefit for US firms is that the money made from these investments is usually stated in dollars, which means that there is protection in place for you during this rocky period.

No time like the present

As already evidenced by the slight increase to $1.17 on 12 September, the pound could increase in value gradually over the coming weeks so if you are interested in investing in the UK, the timing is important.

At the start of the year, one pound was equal to $1.35, highlighting just how dramatic a fall it has taken over nine months.

Equally the strength of the US dollar could be tested as the world experiences global inflation.

The US dollar is the biggest reserve currency and is seen as a safe haven for its relative stability but uncertainty is prevalent everywhere so it is still important to consider these factors.

It can be a difficult decision to decide when to make the right investment but we can offer more advice to help you make the most of these opportunities in the UK.

Contact us for more information.

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