|
Re: Exchange Rate Today
Originally Posted by Michael
(Post 6909593)
It may slow down the rise but it seldom works. The USD and Japanese Yen are rising primarily due to the unwinding of carry trades (international hedge funds and investors selling off foreign assets that were purchased by loans that were made primarily in USD or Yen denominations and now margin calls or redemptions are occurring) causing the dollar and yen to be purchased to pay off the loans. Loans were made in both of those currencies due to the cheap interest rates over the years to purchase securities in markets around the world. The yen has strengthened even more than the USD because Japanese investors have invested more heavily in foreign markets over the past years and are now repatriating the currency.
A large amount of currency is also flowing into the USD for flight to safety reasons so until the financial systems and markets get stable around the world (probably at least another year) the trend will probably continue. Finally it is expected that the UK and Europe will be reducing interest rates in the near future causing further pressure on the pound and euro. Central banks are hesitant to purchase foreign currencies at inflated prices since propping up currencies seldom works and the governments usually take large loses when the currencies eventually continues to fall. If the banks prop up the currencies, the governments instead of the investors take the loses. Just my two cents. |
Re: Exchange Rate Today
Originally Posted by Michael
(Post 6909593)
It may slow down the rise but it seldom works.
|
Re: Exchange Rate Today
1 Attachment(s)
My two cents on Wall Street
|
Re: Exchange Rate Today
Originally Posted by Thydney
(Post 6909974)
Are you sure that your thoughts are still worth two cents?
Originally Posted by Thydney
(Post 6909985)
My two cents on Wall Street
|
Re: Exchange Rate Today
Originally Posted by meauxna
(Post 6909992)
lol, I don't know which one to karma! :rofl:
|
Re: Exchange Rate Today
In today's news, The Telegraph claims that the Euro may be about to turn up its toes: http://www.telegraph.co.uk/finance/c...-meltdown.html
As usual, these days, I'm at a loss to even guess as to what might happen: This says it's bad: The financial crisis spreading like wildfire across the former Soviet bloc threatens to set off a second and more dangerous banking crisis in Western Europe, tipping the whole Continent into a fully-fledged economic slump. Currency pegs are being tested to destruction on the fringes of Europe’s monetary union in a traumatic upheaval that recalls the collapse of the Exchange Rate Mechanism in 1992. Stephen Jen, currency chief at Morgan Stanley, says the emerging market crash is a vastly underestimated risk. It threatens to become “the second epicentre of the global financial crisisâ€, this time unfolding in Europe rather than America. Austria’s bank exposure to emerging markets is equal to 85pc of GDP – with a heavy concentration in Hungary, Ukraine, and Serbia – all now queuing up (with Belarus) for rescue packages from the International Monetary Fund. Exposure is 50pc of GDP for Switzerland, 25pc for Sweden, 24pc for the UK, and 23pc for Spain. The US figure is just 4pc. America is the staid old lady in this drama. A grain of comfort for British readers: UK banks have almost no exposure to the ex-Communist bloc, except in Poland – one of the less vulnerable states. The threat to Britain lies in emerging Asia, where banks have lent $329bn, almost as much as the Americans and Japanese combined. Whether you realise it or not, your pension fund is sunk in Vietnamese bonds and loans to Indian steel magnates. Didn’t they tell you? |
Re: Exchange Rate Today
Originally Posted by lansbury
(Post 6909577)
Why don't you get a fixed rate contract. There are at least 2 companies that do them for periods from 6 to 24 months.
|
Re: Exchange Rate Today
Mansoor Mohi-Uddin, a currency analyst at UBS, predicts that the pound could fall to at least as low as $1.38, the low point it reached after sterling's ejection from the exchange rate mechanism in 1992. "But an even worse crisis in sterling cannot be ruled out now, given the trends of the foreign exchange markets," he said.
|
Re: Exchange Rate Today
1.54 on the pound at the mo....we'll see what happens after todays global stock market tank and what the Dow does.....
|
Re: Exchange Rate Today
Originally Posted by HoosierDaddy
(Post 6899268)
Only $1.64 to the pound :eek:
|
Re: Exchange Rate Today
1.65 today. Kicking myself for not changing last week at 1.54 as I have a fair bit to change.
Do you think there`s a good chance it will dip to that level again anytime soon? |
Re: Exchange Rate Today
Originally Posted by geordie09
(Post 6931008)
1.65 today. Kicking myself for not changing last week at 1.54 as I have a fair bit to change.
Do you think there`s a good chance it will dip to that level again anytime soon? Despite what some people might think about predicting the rate, in the current climate there is just no telling. |
Re: Exchange Rate Today
Originally Posted by geordie09
(Post 6931008)
1.65 today. Kicking myself for not changing last week at 1.54 as I have a fair bit to change.
Do you think there`s a good chance it will dip to that level again anytime soon? |
Re: Exchange Rate Today
Originally Posted by dunroving
(Post 6931247)
If the UK BoE interest rate is dropped (as they are expecting), most of the newspaper economy pages are saying that sterling will drop again (in fact the drop in the dollar over the past few days was attributed to the drop in the Fed IR). If it doesn't, though, don't come looking for me ...;)
|
Re: Exchange Rate Today
Saw 1.49 just now on xe.... :eek:
|
| All times are GMT -12. The time now is 11:30 pm. |
Powered by vBulletin: ©2000 - 2026, Jelsoft Enterprises Ltd.
Copyright © 2026 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.