Exchange Rate
Apr 3rd 2006, 6:43 pm
#1
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Thread Starter
Joined: Feb 2005
Posts: 48
Exchange Rate
Whats happening to the bloody exchange rate?? It was at 2.48 a week ago. We exchanged contracts on Friday and I was getting quite excited at the prospects of all that extra moolar. Don't know whether to hang on now, just my luck. 
Anyone else hanging on or just missed out??
Anyone else hanging on or just missed out??
Apr 3rd 2006, 6:55 pm
#2
Going for a ride
Joined: Sep 2005
Location: Monbulk, Victoria.
Posts: 2,838
Re: Exchange Rate
Originally Posted by innocent bystander
Whats happening to the bloody exchange rate?? It was at 2.48 a week ago. We exchanged contracts on Friday and I was getting quite excited at the prospects of all that extra moolar. Don't know whether to hang on now, just my luck.
Anyone else hanging on or just missed out??
Anyone else hanging on or just missed out??
I haven't had time yet to look into what the rate is expected to do in the next 8-9 months, but maybe it's worth looking at.
Anybody looking to transfer a sustantial amount this could definitely be interesting.
Apr 3rd 2006, 7:53 pm
#3
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Posts: 48
Re: Exchange Rate
Originally Posted by furkew
I received a call from a UK company last week concerning transferring, and what might be worth taking into account, you can pre buy at a set exchange rate. Yo agree on the rate on the day, e.g. 2.51, you pay a 10% deposit, and tell them when the remainder will be paid.e.g. 3 jan 2007. Thr rate is then guaranteed for the exchange.
I haven't had time yet to look into what the rate is expected to do in the next 8-9 months, but maybe it's worth looking at.
Anybody looking to transfer a sustantial amount this could definitely be interesting.
I haven't had time yet to look into what the rate is expected to do in the next 8-9 months, but maybe it's worth looking at.
Anybody looking to transfer a sustantial amount this could definitely be interesting.
Typically then would the set rate for the day be higher than the actual rate at that time.... if you get me
Apr 4th 2006, 11:19 am
#4
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Joined: Jul 2004
Posts: 68
Re: Exchange Rate
Originally Posted by innocent bystander
Typically then would the set rate for the day be higher than the actual rate at that time.... if you get me
You generally pay either a 5% or 10% deposit depending on the company you use. Be aware that if the rate increases after you have the contract by too much then you may have to increase the size of the deposit at very short notice.
My feeling is if you have the money in full then it is probably best to put it into a UK savings account and watch the market and convert in one go when you feel you have the best rate for you, then place the money in an Oz savings account. If you have a house to sell then you could go for a forward contract if the rate is what you would like to fix at and you have enough for the deposit. You can always extend or reduce the length of the contract if you need more time to sell the house or you sell it quicker than thought. There are conditions to this though.
We were going to fix at 2.48 but couldn't release funds from equities quick enough to raise the deposit. Damn!!!!!
Darren
Apr 4th 2006, 4:58 pm
#5
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Posts: 48
Re: Exchange Rate
Originally Posted by demigrate
For a forward contract, which is what you have been talking about, you will get a rate dependant on how long you want to leave the money there for and the current market rate (inter-bank rate). If just a month then the rate would be lower than say 2 years (from GBP to AUD). If like us you are looking to fix for a year then most companies should offer just around or above the current market rate (interbank-rate). Give a company like Ozforex or tranzfers.com a call and they will explain how it works.
You generally pay either a 5% or 10% deposit depending on the company you use. Be aware that if the rate increases after you have the contract by too much then you may have to increase the size of the deposit at very short notice.
My feeling is if you have the money in full then it is probably best to put it into a UK savings account and watch the market and convert in one go when you feel you have the best rate for you, then place the money in an Oz savings account. If you have a house to sell then you could go for a forward contract if the rate is what you would like to fix at and you have enough for the deposit. You can always extend or reduce the length of the contract if you need more time to sell the house or you sell it quicker than thought. There are conditions to this though.
We were going to fix at 2.48 but couldn't release funds from equities quick enough to raise the deposit. Damn!!!!!
Darren
You generally pay either a 5% or 10% deposit depending on the company you use. Be aware that if the rate increases after you have the contract by too much then you may have to increase the size of the deposit at very short notice.
My feeling is if you have the money in full then it is probably best to put it into a UK savings account and watch the market and convert in one go when you feel you have the best rate for you, then place the money in an Oz savings account. If you have a house to sell then you could go for a forward contract if the rate is what you would like to fix at and you have enough for the deposit. You can always extend or reduce the length of the contract if you need more time to sell the house or you sell it quicker than thought. There are conditions to this though.
We were going to fix at 2.48 but couldn't release funds from equities quick enough to raise the deposit. Damn!!!!!
Darren
Apr 4th 2006, 5:13 pm
#6
Banned
Joined: Nov 2002
Location: USA
Posts: 913
Re: Exchange Rate
Originally Posted by innocent bystander
Whats happening to the bloody exchange rate?? It was at 2.48 a week ago. We exchanged contracts on Friday and I was getting quite excited at the prospects of all that extra moolar. Don't know whether to hang on now, just my luck.
Anyone else hanging on or just missed out??
Anyone else hanging on or just missed out??
If you are Canadian citizen you can work in USA after easily getting TN-1 status whereas if you are Australian Citizen you have to follow similar H1B procedures to obtain E3 visa to work in USA.Moreover if you are not from British Background then Australian citizens have to apply for HSMP(UK) to work in UK. Please comment and suggest?
Apr 4th 2006, 5:54 pm
#7
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Joined: Jan 2004
Posts: 209
Re: Exchange Rate
Originally Posted by smurtaza
Canada is a G8 member and a powerful economic giant.I live in Sydney on permenant resident visa and watching Australian Dollar loosing its currency value in international market.But Canadian Dollar is rising daily as Canada have one of the greatest oil reserves in the world.
If you are Canadian citizen you can work in USA after easily getting TN-1 status whereas if you are Australian Citizen you have to follow similar H1B procedures to obtain E3 visa to work in USA.Moreover if you are not from British Background then Australian citizens have to apply for HSMP(UK) to work in UK. Please comment and suggest?
If you are Canadian citizen you can work in USA after easily getting TN-1 status whereas if you are Australian Citizen you have to follow similar H1B procedures to obtain E3 visa to work in USA.Moreover if you are not from British Background then Australian citizens have to apply for HSMP(UK) to work in UK. Please comment and suggest?
We were offered 2.36 (rate at 2.38) couple of weeks ago on a Thursday by the following Monday phoned company because noticed it had risen to 2.44 and they offered us 2.415 (which was quite good) with 10% deposit. Then noticed a week later it had gone upto 2.48. What you see on the computer is not always what you are offered, usually a couple of cent less so that the company can make a profit and does not charge you any other fees.
Apr 4th 2006, 9:42 pm
#8
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Joined: Jul 2005
Location: Mozzman
Posts: 235
Re: Exchange Rate
FWIW
This is the advice our banker gave us on the FX rate currently
1. GBP/AUD has been trading steadily from December last year till mid March this year. The trading range is between 2.33-2.37
2. Due to weak AUD since late March ( Due to FED increase rate and possible weaker commodity price ) GBP/AUD raised sharply into a new trading range of 2.4089 - 2.4780.
3. Recently the trading range is around 2.4200 - 2.4500
We believe that this range should not shift unless there is a major surprise to the market. As RBA will announce the official interest rate tomorrow morning, all market is pricing in that AUD's interest will remain steady.
If you wish to convert in the short term, I strongly recommend that you place an overnight order in case of any sharp spike in the short term. For medium trading strategy, you can try Dual Currency Deposit. At the moment, the medium to long term view on GBP/AUD we still believe that AUD will weaken further but depends on the commodity cycle and news from EUR.
2. Due to weak AUD since late March ( Due to FED increase rate and possible weaker commodity price ) GBP/AUD raised sharply into a new trading range of 2.4089 - 2.4780.
3. Recently the trading range is around 2.4200 - 2.4500
We believe that this range should not shift unless there is a major surprise to the market. As RBA will announce the official interest rate tomorrow morning, all market is pricing in that AUD's interest will remain steady.
If you wish to convert in the short term, I strongly recommend that you place an overnight order in case of any sharp spike in the short term. For medium trading strategy, you can try Dual Currency Deposit. At the moment, the medium to long term view on GBP/AUD we still believe that AUD will weaken further but depends on the commodity cycle and news from EUR.
