Renie

Exchange rate currently at 2.08 any ideas if its going to improve or drop lower still.

Any ideas/predictions would be great, any experts out there.

Centurion

I reckon with our economic state the way it is the dollar will remain strong against harder currencies. Which is top news for me but less so for those yet to move I appreciate.

But then I don't look at whats happening in Britain or the British economy and have no real desire to. As long as my dollars stronger for trips back!!!

Swerv-o

ABC reported it as being 48c to the pound today. Not far to go until it's 2-1. Maybe a surprise interest rate hike today would seal it!

ex_exile

No rise today I think but if there was to be one we would be heading towards 1-1 with USD as well.

DrWho

Latest inflation figures look to be over 4%, well outside the RBA's guide of 2%-3%... Reckon the next rise might not be that far off...

ex_exile

A classical economist will tell you that in the short term putting up interest rates actually feeds inflation (until it chokes off demand) and that raising interest rates is also an ineffective way of dealing with inflationary pressures caused by commodities with relatively inelastic demand i.e, oil.

But I dont expect logic or economics to stop a rate rise at the next RBA meeting.

spartacus

Exactly.

Read it and weep.

http://www.ozforex.com.au/cgi-bin/chartsFast.asp

Big Galah

A hold on rates may have a (relative) weakening effect on the AU$.

But, those holding off on exchanging to AU$ from Sterling may want to consider the better rate of interest you would get in Oz that could offset some of the "loss", especially if the AU$ remains strong in the long run.

That said, exchanging a large sum and then watching the rate zoom the opposite way is pretty depressing... ho-hum.

No one can predict the future...

nick72

We do not expect a rate rise, we expect levelling out now for the rest of the year.

However $ will remain strong and the rise and fall between 2.15 and 2.05 is all you will see over the next few months.

Aus economy is too strong to for the exchange to head back up to the 2.5.

The OP that said 1-1 and 2-1 is closest to the mark !

Nick

nick72

See what did I tell you !! No increase in interest rates this month !!

Nick

Renie

Well perhaps the UK interest rates will drop!!!!

Swerv-o

Now if you could PM me your suggestion for the 3:15 at Newmarket, I would be very grateful...


S

nick72

See thats what happens when you give informed advice.

People go all pedantic on you.

To answer your question though, there are no runners at Newmarket today, so maybe you could be a little more specific and I will give you an idication ?

Nick

ex_exile

I think you wound him up with this
But you didnt have to be Mystic Meg to pick a hold for this month, next meeting will be different, fancy giving us a prediction?

I'm saying up as inflation is tipped to be 4.3% and trending up, the economy will still be strong and unemployment will still be way below the NAIRU.

Swerv-o

No, I wasn't wound up - I was just making a glib comment based upon his obvious success at predicting the future!

I was hoping for another rise today, as I am enjoying lording it up with my savings and I don't have a mortgage.

For anybody who is interested, Bankwest have just increased their interest rate to 8.25% between May and January next year. Grrrr. And I had just moved my money to Citybank to take advantage of their 8% offer!


S