Dollar Falls after No Rate Rise
Apr 6th 2005, 9:45 am
#1
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Joined: Mar 2005
Posts: 582
Dollar Falls after No Rate Rise
After the Reserve Bank has announced there will be no interest rate rise in Aus at the moment the dollar has fallen slightly which is good news for anyone looking to transfer money from the UK:
The BBC Market Data is showing the current exchange rate as $2.45/£ and it does appear to be an upward trend, oh for a crystal ball!!
http://www.heraldsun.news.com.au/com...5E1702,00.html
Dollar falls on steady rates
06apr05
THE dollar has fallen more than one third of a US cent after the central bank left interest rates on hold, with the markets now betting on steady rates for the remainder of the year.
The Reserve Bank of Australia today left official interest rates unchanged at 5.50 per cent after yesterday's monthly board meeting.
The dollar fell from 76.74 US cents just before the announcement at 0930 AEST to 76.38 by 0935.
By 0945 AEST the dollar had fallen to 76.36.
Many economists had expected the RBA's cash rate to rise by a quarter per cent, following a similar rise in March.
ICAP economist Simon Barbetti said the market had expected rates to rise, but had been wary about the possibility of it not happening today.
"We've lost about thirty ticks on the news of the decision," he said.
"It's likely to keep (losing ground) today, there has to be an adjustment to an expected rate rise which would have supported the dollar, and that didn't happen.
"We've also seen the bills rally about seven points in the futures markets so that has cut back on expectations of a hike again."
The June bill futures contract rallied to 94.21 by 0945 AEST from 94.11 ahead of the announcement.
Just before the announcement the yield on the Commonwealth Government April 2015 bond was at 5.615 per cent and the yield on the August 2008 bond was at 5.590 per cent.
At 0935 the yield on the April 2015 bond had risen to 5.635 per cent and the August 2008 was at 5.58 per cent.
privacy terms © Herald and Weekly Times
Dollar falls on steady rates
06apr05
THE dollar has fallen more than one third of a US cent after the central bank left interest rates on hold, with the markets now betting on steady rates for the remainder of the year.
The Reserve Bank of Australia today left official interest rates unchanged at 5.50 per cent after yesterday's monthly board meeting.
The dollar fell from 76.74 US cents just before the announcement at 0930 AEST to 76.38 by 0935.
By 0945 AEST the dollar had fallen to 76.36.
Many economists had expected the RBA's cash rate to rise by a quarter per cent, following a similar rise in March.
ICAP economist Simon Barbetti said the market had expected rates to rise, but had been wary about the possibility of it not happening today.
"We've lost about thirty ticks on the news of the decision," he said.
"It's likely to keep (losing ground) today, there has to be an adjustment to an expected rate rise which would have supported the dollar, and that didn't happen.
"We've also seen the bills rally about seven points in the futures markets so that has cut back on expectations of a hike again."
The June bill futures contract rallied to 94.21 by 0945 AEST from 94.11 ahead of the announcement.
Just before the announcement the yield on the Commonwealth Government April 2015 bond was at 5.615 per cent and the yield on the August 2008 bond was at 5.590 per cent.
At 0935 the yield on the April 2015 bond had risen to 5.635 per cent and the August 2008 was at 5.58 per cent.
privacy terms © Herald and Weekly Times
Apr 6th 2005, 7:18 pm
#2
Joined: Feb 2005
Posts: 4,337
Re: Dollar Falls after No Rate Rise
Originally Posted by Flying Banana
After the Reserve Bank has announced there will be no interest rate rise in Aus at the moment the dollar has fallen slightly which is good news for anyone looking to transfer money from the UK:
The BBC Market Data is showing the current exchange rate as $2.45/£ and it does appear to be an upward trend, oh for a crystal ball!!
The BBC Market Data is showing the current exchange rate as $2.45/£ and it does appear to be an upward trend, oh for a crystal ball!!
Apr 6th 2005, 7:31 pm
#3
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Re: Dollar Falls after No Rate Rise
Originally Posted by Perthforme
Well another 5 or 10 cents and i'll be happy come on the pound
Apr 6th 2005, 7:32 pm
#4
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Re: Dollar Falls after No Rate Rise
I know not everyone will like me for this but I hope it stays low as we will need to transfer sterling for the $100000 bond investment soon.Knowing our luck it will start to rise in a few weeks time.
Apr 6th 2005, 7:54 pm
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Re: Dollar Falls after No Rate Rise
Originally Posted by Dreamaway 10
I know not everyone will like me for this but I hope it stays low as we will need to transfer sterling for the $100000 bond investment soon.Knowing our luck it will start to rise in a few weeks time.
I think there is crossed wires here. Surely if you are about to pay your $100K bond, you want the Dollar rate to keep increasing against the pound. Currently Pound to Aus Dollar is $2.46. You want this to rise as far as it can, before you pay your bond.
Apr 6th 2005, 8:36 pm
#6
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Re: Dollar Falls after No Rate Rise
Yes Sorry I do mean the other way round.Oh dear and I have only had two glasses of wine tonight!!!!!!
Apr 6th 2005, 8:40 pm
#7
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Re: Dollar Falls after No Rate Rise
No hang on a minute no I don't as this means that we will have to pay more.
At the moment it is roughly £40,800 that is required to invest if the Aussie dollar goes up it will mean that we will need to find more Uk pounds.
At the moment it is roughly £40,800 that is required to invest if the Aussie dollar goes up it will mean that we will need to find more Uk pounds.
Apr 6th 2005, 9:10 pm
#8
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Re: Dollar Falls after No Rate Rise
Originally Posted by Dreamaway 10
No hang on a minute no I don't as this means that we will have to pay more.
At the moment it is roughly £40,800 that is required to invest if the Aussie dollar goes up it will mean that we will need to find more Uk pounds.
At the moment it is roughly £40,800 that is required to invest if the Aussie dollar goes up it will mean that we will need to find more Uk pounds.
I see a little confusion going on, see below example..
A$ @ $2.4 to the £1...means you will need £41,666
A$ @ $2.5 to the £1...means you will need £40,000
The more $ to the £ the less £'s you need!!!
Hope this helps
Tabby
Apr 6th 2005, 9:13 pm
#9
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Re: Dollar Falls after No Rate Rise
Originally Posted by Dreamaway 10
No hang on a minute no I don't as this means that we will have to pay more.
At the moment it is roughly £40,800 that is required to invest if the Aussie dollar goes up it will mean that we will need to find more Uk pounds.
At the moment it is roughly £40,800 that is required to invest if the Aussie dollar goes up it will mean that we will need to find more Uk pounds.
Apr 6th 2005, 9:23 pm
#10
Joined: Feb 2005
Posts: 4,337
Re: Dollar Falls after No Rate Rise
Originally Posted by chr1sarter
How many glasses of wine did you say you had. Trust me, you want the dollar value to go up.
If the value of the dollar goes up more pounds will be needed to buy A$100k
Apr 6th 2005, 9:38 pm
#11
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Re: Dollar Falls after No Rate Rise
Originally Posted by Perthforme
Glad your not my finance adviser
If the value of the dollar goes up more pounds will be needed to buy A$100k
If the value of the dollar goes up more pounds will be needed to buy A$100k
Apr 7th 2005, 12:05 am
#12
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Joined: Mar 2005
Posts: 582
Re: Dollar Falls after No Rate Rise
LOL it took me ages to get it worked out the right way round. The BBC website http://newsvote.bbc.co.uk/1/shared/f...elve_month.stm
shows it up another cent to $2.46/£ if you look at last year on their graph it peaked in June/July at $2.7 and this has happened historically quite often, maybe it's due to summer hols in the UK? It's slightly higher now than at the same time last year so have fingers crossed for another peak.
It's only an opinion but I reckon it will drop off again before the election as the market will get all jumpy not knowing who will win then after the election it will rise again. No I don't have a crystal ball but have spoken to several people I know in the financial business. But hey anything could happen, will keep fingers crossed and wait n see.
shows it up another cent to $2.46/£ if you look at last year on their graph it peaked in June/July at $2.7 and this has happened historically quite often, maybe it's due to summer hols in the UK? It's slightly higher now than at the same time last year so have fingers crossed for another peak.
It's only an opinion but I reckon it will drop off again before the election as the market will get all jumpy not knowing who will win then after the election it will rise again. No I don't have a crystal ball but have spoken to several people I know in the financial business. But hey anything could happen, will keep fingers crossed and wait n see.
Apr 7th 2005, 7:48 am
#13
Joined: Feb 2005
Posts: 4,337
Re: Dollar Falls after No Rate Rise
Originally Posted by chr1sarter
What.. would you rather have 2.4 to the pound,as it is today, or have the dollar rise to 2.7. The later gives you an extra $30k in your pocket, when converting pounds into dollars.
Think we have our wires crossed
Apr 8th 2005, 3:40 pm
#14
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Re: Dollar Falls after No Rate Rise
Originally Posted by tabby
Hi
I see a little confusion going on, see below example..
A$ @ $2.4 to the £1...means you will need £41,666
A$ @ $2.5 to the £1...means you will need £40,000
The more $ to the £ the less £'s you need!!!
Hope this helps
Tabby
I see a little confusion going on, see below example..
A$ @ $2.4 to the £1...means you will need £41,666
A$ @ $2.5 to the £1...means you will need £40,000
The more $ to the £ the less £'s you need!!!
Hope this helps
Tabby
Apr 8th 2005, 3:41 pm
#15
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Posts: 987
Re: Dollar Falls after No Rate Rise
Originally Posted by Perthforme
$2.4 to the pound is a higher vaule "dollar" than " $2.7 to the pound
Think we have our wires crossed
Think we have our wires crossed
