andy thomas

hi all,

I have now raised enough cash for a 10% deposit to guarantee/fix the exchange rate with Halewood IFX for the amount we expect to exchange once everything is sold.

I believe that interest rates in Oz are expected to rise on the first Wednesday in April, if this happens what immediate effect could this have, albeit for the short-term, on the £/$ exchange rate, as we have quite a tidy sum and even a 1cent swing would mean + or - a few thousand dollars.

I always thought that I would be happy at $2.40-$2.45 but if the impending interest rate rise could bump this up it may be worth waiting till then

What do you think, I haven't seen the effects of rate rises on the exchange rates before. Or will it go down.

Andy. Visa in hand and ready to go.

itsasecret

NO the increased aus interest rate will make the $oz dollar stronger as a currency, because more people buy it as its a better investment in cash terms...

andy thomas

does that mean in general terms, that whatever the exchange rate at the time eg. $2.45/£, an interest rate rise will cause this to fall resulting in fewer dollars for your pound? if so should I buy now?

itsasecret

Cant say if you should buy,, but yes your right.. a higher interest rate makes aus a better place for people to invest in so this in turn bumps up the dollar and you are buying a stronger currency so you will get less $$ for your ££. Lots of other factors are taken into account, some of which are the Yen, jobless, exports, housing, terrorism ..
last i heard there was not so much a rush to increase the interest rate as expected because of the latest jobless figures.

andy thomas

thanks Its A Secret, thats a great help, also thankyou MaxPaxx.

I have just got off the phone to a dealer and secured at $2.4375.
I feel very happy now and its one less thing to worry about.

andy thomas

I also feel good about tonight as well. My prediction:-

Leeds 0-3 City

Bordy

Thought you would be shouting for the Melbourne man to, Viduka.

Jamesy

I spoke to Halewood about forward rates, the spot rate today is 2.449 so you do seem to get a hammering when you go for a forward rate dont u?

Terry

Double check rates with the big banks also the last qoutes I got had the banks giving a better rate as opposed to Halewood.

Terry

andy thomas

The spot rate is the inter bank rate. Nobody gets the inter bank rate of exchange. At the time I agreed the deal the interbank rate was 2.4525, I got 1.5 cents below that which I was happy with. dont forget I have only paid 10% of the amount I purchased to guarantee the rate until I have the funds ready to exchange, and there is no time limit when I have to cough up the other 90%.

I'd rather get 2.4375 now than 2.3 when Ive sold my house and cashed in. Dont you have to pay the banks the full 100% straight away?

I'm happy, that was the goal.

ABCDiamond

Andy,
That's the best way to look at it.

I've seen some people hang on, hoping to make more money from it, but end up with less. And had many sleepless nights in between !

It's a gamble, and once you have committed yourself, you must not think "what if" !

Because if you had waited for a better rate, it could easily have gone the wrong way.

andy thomas

Cheers mate, I can sleep now.

If it goes up, then so what, there will be a little more for the next man. If it does go up it aint gonna be by much anyway and all the so called experts expect it to drop to 2.20/2.30 by the end of the year.

When we started looking last Oct the rates were about 2.35 and someone who should know said if you can get 2.40 you will have done ok. I think I've done good. Cant believe that I,ve only had to lay out 10% to fix it, its a steal.

Andy Thomas.

plumber

I agree if you can bag 2.4 .....be grateful and get on with it !
Just paid up my forward contract with HIFX and happy with the rate i got.
Received letter from HSBC in QLD , confirming my account is now up and running , so will now send $ 's on to them asap and start earning some decent interest (currently 2% in uk )



all the best plum






ps good look everyone who's yet to exchange!

Jamesy

Fair comment! Will find out what the HIFX forward rate is today as the spot rate is up to 2.49, you're right its a gamble and we would all be millionaires if we could predict what the money markets are going to do!