paying for a wedding in Euros, do I pay now or invest

dinky64

we are paying for our daughters wedding abroad this year and have been quoted the price in euros. Since then obviously the euro has dropped quite significantly and the price is now approx £1000 more than we originally anticipated. I already have the money so what should I do....pay now before it drops any further or invest the money on a temporary basis in this country and try to make some interest to compensate for what I will be losing on the euro. If investment is the answer any ideas where and how? We are looking at approx £6000

Inactive

To be honest, you may as well toss a coin in the air, because sadly nobody can predict currency fluctuation.

The only certain way to know exactly how much you will pay, is to pay it now.

Investing isn't going to bring much interest in today's climate.


Sorry that doesn't sound helpful, but there really is no way of knowing.

gozomark

agree with inactive - you have a € debt - doing anything other than paying it now means you are gambling on the movement of the £:€ over the next few months - personally I think the £ will strengthen, but it could easily be 1.20 or 0.90 in 6 months time, and anyone who who tells you they "know" it will be one or the other is deluded

oldandgrumpy

If you want to be sure of the rate you will get later in the year, Travel Money Services will give you a price for free delivery of Euros months ahead. Of course you lose any interest, but have a fixed rate. Of course, if the bill is flexible, perhaps it is best to wait it out as the bill will be related to the rate you will get when you have to pay it.