We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
£-$ Deal or no deal ???
trets77
Posts: 2,886 Forumite
with the highest £-$ exchange rate in 17 years ( correct me if i have got that wrong) and with a definate trip booked to USA for Oct , i,m thinking i should buy my £2000 spending money now rather than it earn 5% in a savings acount till Oct.
anyone disagree??
cheers guys
anyone disagree??
cheers guys
Better in my pocket than theirs :rotfl:
0
Comments
-
You don't know what the exchange rate will be in October, so you really are gambling. It might be $2.2 to £1 by then.0
-
The current weakness of the dollar is unlikley to improve (from US point of view) until Bush gets his rear-end in gear and starts concentrating on US economy rather than damage-limatation in Iraq. The $2:£1 may be here for a while
Mike J0 -
If you buy your dollars now you effectively need the exchange rate to drop by 4% or so before your decision even starts to be profitable. Not only that but you'll presumably be stuck with $4000 in cash to look after until October. Not worth it in my opinion - unless you're an expert there's little point in guessing where the exchange rates will be in almost a year's time, because it will just be a guess.0
-
If you look at the plot of dollar versus pound you'll see we are at a 14 year high.
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/01/24/cninflat24.xml
The plot shows that it has droppped to $1.4 /£ when disasters occur - such as Black monday and 9/11.
My view is that I am delighted with a $1.97 rate (meaning I can buy from my bank 1.945)
Citibank will also let you open a deposit account paying 2.5% interest which whilst not fabulous by UK standards should factor in your decison.
If it does go to $2 - I'll buy some more and "average up" but I won't have entirely missed the boat if it sinks!0 -
ag359 wrote:If you buy your dollars now you effectively need the exchange rate to drop by 4% or so before your decision even starts to be profitable. .
How does that work?
I'm assuming we are talking about obtaining dollars to spend - you're not planning to sell them back ie exchange dealing.
Then if the dollar drops by 0.1% your decison was profitable, by 0.1%
0 -
Hedged my bets and purchased £1000 @ $1.950 = $1950 (funnily enough)
will resurrect this thread in mid-late september to see what the outcome of this is. Better in my pocket than theirs :rotfl:0 -
I was just going to suggest that as I read the first few posts - do half !
I am just back from NYC and took some dosh out the bank with my NW card for my next trip and got 1.97 rate - so not complaining.
If it goes weaker, then don't be annoyed, just be happy that it's even weaker and if it's stronger then you can be wuietly smug you did the right thing (and so will I ) ****************************0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.4K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards