This past quarter, my firm became 20% more expensive for US clients, yet we did not raise fees. Why? The answer lies in the volatility of the currency markets.
The slump in the dollar relative to the pound over the past few months has meant not only that Jaguars have become more expensive for Americans, but also the costs of London lawyers.
With the dollar trading around an 11-year low with the pound and an all-time low against the euro, European legal advice is increasingly expensive for American clients. In June last year, the already weakening dollar was trading at £1 to $1.54. The dollar would buy e1.20. Today’s rates are £1 buys $1.86, and the dollar buys e0.79. For firms like Richards Butler, which generate large proportions of their revenue from US companies, it means increased attention to managing clients’ billing expectations and close attention to costs.
