GBP to USD exchange rate

Today's mid-market rate is 1 GBP = $1.3470. On its own that number tells you little. What matters is where it sits against the recent range and the long history.

Here is the context most rate pages skip. The pound's all-time high against the dollar was $2.649, back on 6 March 1972. Its all-time low was $1.035, on 26 September 2022, during the UK "mini-budget" crisis.

Since the 2016 Brexit vote it has mostly traded in a broad band, roughly $1.14 to $1.43, and its five-year average is about $1.28.

So a rate above $1.28 means the pound is buying more dollars than it has on average lately. Use the rate card above for the 30-day and 90-day range to see where today sits.

One honest caveat. Many people expect the pound to "recover" to $1.50 or $2.00 because it was once there. Exchange rates move on economics, not nostalgia, and no one can reliably call the next move.

At today's mid-market rate of $1.3470 to the pound, here is what common amounts are worth.

These are mid-market figures, the benchmark, not a quote. A provider gives you a little less. The live comparison table above shows the real, after-fee amounts.

The rates refresh live. For the exact dollars a specific provider will send today, use the calculator and comparison above.

Working the other way, here is what a dollar amount is worth in pounds at today's mid-market rate. Useful if you have been quoted a price in dollars, such as US tuition or a supplier invoice.

These update with the live rate. A provider's real payout will differ slightly once its rate and fee are applied.

This is where real money is won or lost, and on tuition or a property deposit the numbers are large.

Most of the cost hides in the exchange-rate margin, not the visible fee. Bank of Scotland, for example, publicly states a standard FX margin of 2.60 percent on international payments up to £25,000.

A mid-market specialist like Wise uses the real rate and charges a small, transparent fee instead, usually around 0.35 to 0.60 percent.

On £1,000, that 2.6 percent bank margin costs you roughly $27 to $35 in lost dollars compared with a specialist.

On £10,000, the same margin costs about $270 to $347. The percentage markup scales with the transfer, so it bites hardest on the big payments.

The lesson is not that all banks are equal. It is to compare the dollars that actually arrive, every time.

Cable is a tug-of-war between the UK and US economies, plus the dollar's special global status.

1. The Fed versus the Bank of England. The gap between US and UK interest rates is the main driver. When the US Federal Reserve holds rates higher than the Bank of England, money favours dollar assets, and the pound buys fewer dollars.

2. US economic data. The monthly US jobs report (non-farm payrolls, first Friday of the month) and US inflation move the pair hard on the day. A weak jobs number makes Fed rate cuts more likely, which tends to weaken the dollar and lift the pound.

3. The dollar as the world's safe haven. The dollar is the currency the world runs to in a crisis. In "risk-off" moments, global investors buy dollars for safety.

That pushes the dollar up worldwide, so a UK sender gets fewer dollars per pound, even when nothing has changed in the UK. It is why the pound can fall against the dollar during events that have nothing to do with Britain.

This is the part generic rate pages skip, and it matters a lot for the biggest reason UK families send dollars: education.

US universities are expensive for UK students, who pay full international rates. Public four-year universities run about $33,000 to $48,000 a year, and private ones $48,000 to $78,000, before living costs.

With living expenses the total often reaches $45,000 to $90,000 a year, so families make large, time-sensitive transfers. In 2024/25 there were about 11,136 UK students studying in the US.

The US tax rule most people miss. If you are sending money to someone in the US, the US taxes gifts on the giver, not the receiver, and a cash gift from a UK person is generally not subject to US gift tax.

But there is a reporting rule. If a US person receives more than $100,000 from a foreign person in a year, they must report it to the IRS on Form 3520. It is a report, not a tax, but missing it carries heavy penalties.

A useful exemption for tuition. Money paid directly to a US university for tuition, or directly to a hospital for medical care, is exempt from US gift rules entirely. The key is to pay the institution directly, not hand the money to the student to pay the bill.

None of this is tax advice. Take professional advice on a large or unusual transfer.

Here is the factual picture, not advice. The pound is currently above its five-year average of about $1.28, so it is buying more dollars than it has on average recently.

That does not tell you what happens next. Since 2016 the pair has swung across a wide band, and it has seen sharp shocks like the 2020 pandemic and the 2022 mini-budget.

Analysts in 2026 broadly see it in a $1.33 to $1.40 range over the next year, with some more bullish, but currency forecasts are unreliable and often overtaken by events.

For a large payment on a known date, such as a year of tuition or a property purchase, many people use a forward contract to fix today's rate in advance. These are offered by FCA-authorised firms and are not suitable for everyone, so weigh the certainty against the cost.

Updated live. The GBP/USD rate, the conversions and the provider comparison refresh automatically from our live feeds. The research and figures are reviewed regularly and updated when the data or rules change.

Written by Mike Smith, money-transfer and FX specialist, from primary-source research (Bank of England, US Federal Reserve, IRS). Live rates are indicative mid-market figures, so confirm the exact quote with your chosen provider before you send. Information only, not financial, investment or tax advice. Forward contracts and similar FX products are offered by FCA-authorised firms and are not suitable for everyone.