How to Convert U.K. Money to U.S. Dollars

The foreign exchange market is group of representatives that set the daily conversion rate for countries around the world. Currency exchange is needed to purchase goods in other countries, whether it is in person or over the Internet. According to the Federal Reserve Bank of New York, the foreign currency market is "a worldwide network of traders, connected by telephone lines and computer screens." Across the U.K., people use the sterling pound except in the Republic of Ireland, where the euro is used. The currency exchange rate changes daily.

Instructions

1. • 1

     Visit a currency converter such as Yahoo! Currency Converter (see References) to check the daily rates.

   • 2

     Multiply the number of pounds by the current U.S. rate. For example, as of July 2010 the exchange rate is 1 pound = $1.54 (US). Therefore, if you have 5 pounds, multiply by 1.54 to get the current exchange rate. Five pounds is equivalent to $7.71.

   • 3

     Multiply the amount of euros by the current U.S. exchange rate. As of July 2010, the exchange rate is 1 euro = $1.29. Therefore 5 euros is equivalent to $6.45.