How the Pound performed in March
Despite global events, the Pound held its own against the Euro in March, posting a 1% improvement. In fact, mid-March delivered the best rates for buying Euros since last June — good news for anyone in the process of buying their dream home in Europe.
Conversely, against the US Dollar, we saw rates fall by 2% over the month.
Rate movements
| Currency Pair | March | 2026 to date |
|---|---|---|
| GBP/EUR | +1.0% | +0.4% |
| GBP/USD | -2.0% | -2.0% |
In real terms, a typical €200,000 property would have cost around £700 less at the end of March than at the turn of the year — and cheaper still than last November, when the Pound was at its recent low.
Why did the Pound improve against the Euro in March?
This was largely down to interest rates. Before hostilities in the Middle East led to rising energy costs, the Bank of England had been expected to cut UK interest rates. However, renewed concerns around inflation prompted a shift in expectations.
Higher interest rates typically support a currency, and that’s what we saw with the Pound. Rates are now expected to remain higher for longer, increasing demand for Sterling and helping to support its value.
Of course, if inflation were to rise sharply again, this could create challenges for the UK economy and for Sterling — so it remains a delicate balance.
What happened against the US Dollar?
Despite the USA’s involvement in Iran, the Dollar strengthened. This was driven by a combination of factors, including higher oil prices and the Dollar’s status as a “safe haven” currency, where investors often move funds during periods of uncertainty.
The snapshot above also does not fully reflect the volatility seen throughout the month, as the Dollar fluctuated more than both the Euro and the Pound, highlighting ongoing uncertainty around US policy direction and geopolitical developments.
Looking ahead to April
At the time of writing, a two-week ceasefire in the Middle East has been brokered, although it appears fragile. Given the political complexity, uncertainty around energy prices, and the potential for further escalation, it is difficult to predict how exchange rates may move in the coming weeks.
At A Place in the Sun Currency, we offer a range of tools — including the ability to fix your exchange rate in advance — to help buyers and sellers of overseas property manage their budgets effectively.
Whatever happens next, it is important to remember that you are buying or selling a property, not speculating on the currency markets.
How to protect your budget
If you are planning to buy overseas in the coming weeks or months, it is worth contacting A Place in the Sun Currency before you travel to help make your money go further.
Alongside regular market updates and insight, you could save up to £4,200* on a typical property purchase thanks to the commercial exchange rates available to our clients. If you are selling a property and repatriating funds back to the UK, our service can be even more valuable — contact the team directly for more information.
A Place in the Sun Currency is regulated by the FCA and the Bank of Spain. It is a service designed specifically to help property buyers, sellers and owners move their money safely and efficiently across borders.
