USD dilemma

Evasmummy_2 · 13 August 2009 at 10:14PM

Hi,

I am new here and this is my first post - I hope someone can help or point me in the right direction

I was given a sum of money in US Dollars a few years ago and am now considering cashing them in - is this wise or should I keep a hold of the Dollars and see what happens with the exchange rate?

Thanks in advance

malik999 · 14 August 2009 at 1:26AM

Now is as good a time as any to cash them in. The exchange rate is better for you now than it has been for the past 5 years.

Cash them in and put the money in a high interest account. I suspect youre currently getting very little if no interest on the money currently so any possible future movement in the dollar against you is going to be offset by the interest you will have earn't anyway.

hth

tradetime · 14 August 2009 at 8:21AM

It was actually much better 6 months ago, but I think I know what you mean, in that we could look at that as a blip in the overall trend, so yes, probably looking back to somewhere like 2001 or '02 for a decent rate.
To the OP, in my experience there is little to be gained in holding onto a foreign currency to "see what the exchange rate does" you might make 10%, you might lose 10% I'd just concentrate on finding the best offers to exchange it as there can be quite a bit of variation in that.
Given that you were given it a few years ago, you have already made some profit, of course you may have forfeited the interest it would have earned assuming it is not in an interest bearing account.

bendix · 14 August 2009 at 9:54AM

Doesnt it depend how much it is? If it's a couple of thousand bucks, I wouldnt sweat the small stuff. If it's substantial, then you need to be more mindful and - as someone has said - now is as good a time as any.

I always laugh when I hear people stressing over a cent movement here or there before they go on holiday as if it's a major catastrophe. We're talking the price of a beer or two on a typical holiday budget.