aussie dollar in free fall confusion

king_rat

i am off to oz next month feb and was reading the paper that said that because of the flooding the aussie dollar is in free fall.i know its a sad time over there but i need to change my pound sterling up to aus dollars and after reading this in the paper thought right i better do it now incase it gets worse. i checked the exchange rate and it was 1.53 to the pound so i mentioned it to my mate who also is going over there and he sais well if it is free fall we are best off waiting till it goes lower. surely if it goes lower we wont get so many dollars to the pound and will be worse off.he argued the case and said no we are best off waiting cause if the aus dollar is in free fall we would be best to wait.
am i missing some thing here or is he right in what he is saying. i cant get my head round it cause surely ide be better off getting it now rather than wait for the free fall.
cheers.:beer:

HXDave

King Rat,

unless i'm missing something too, i agree with you. you want to get the currency at the HIGHEST rate you can, not the lowest.

HXDave

Gloomendoom

!!!!!!!........

Bennifred

I think you have it wrong, your mate is correct - if the dollar is falling, it means it is worth less, and so you get more dollars to the pound. You want the currency you are buying to be weak, and the currency you are using to buy that currency to be strong. HTH!

phatbear

Heres a simple equation for your friend:

£100=$153 (oz at the mo)

free fall takes it to say $1.43 to the £ so

£100=$143

now im non genius but i'd prefer $153 in my pocket compared to $143 for the same outlay

HappyMJ

Well the exchange rate is now $1.58 to the £ and rising every day since Dec 29 when it was $1.52 which means the aussie is falling and the pound is rising. It's a gamble whatever you do so you could hedge your bet by converting some now and some when you go.

Check the chart here http://www.x-rates.com/d/AUD/GBP/graph30.html

Nobjocki

king_rat wrote: »

i am off to oz next month feb and was reading the paper that said that because of the flooding the aussie dollar is in free fall.i know its a sad time over there but i need to change my pound sterling up to aus dollars and after reading this in the paper thought right i better do it now incase it gets worse. i checked the exchange rate and it was 1.53 to the pound so i mentioned it to my mate who also is going over there and he sais well if it is free fall we are best off waiting till it goes lower. surely if it goes lower we wont get so many dollars to the pound and will be worse off.he argued the case and said no we are best off waiting cause if the aus dollar is in free fall we would be best to wait.
am i missing some thing here or is he right in what he is saying. i cant get my head round it cause surely ide be better off getting it now rather than wait for the free fall.
cheers.:beer:

www.oanda.com will show you the Historical Exchange Rates for the pound versus the Australia Dollar over the last 500 days.

This is the Interbank Rate ( which is not the same as the tourist rate because that's how they make money changing your pounds ) which will give you a guide to what's happening to currencies.

If you convert GDP into AUD this will tell you exactly what one pound will buy you in dollars.

Far from being in freefall the Aussie dollar hasn't moved that much since last summer although you are getting less for your pound than you would have been this time last year which is why the beer was so expensive for the Barmy Army Down Under in Oz this winter.

This site also offers Travel Exchange Rates - which is a printable guide to whatever the pound is worth in different denominations of the currency you are buying.

phatbear

£1.58 is a trading price not a selling price

newbie007_2

phatbear wrote: »

Heres a simple equation for your friend:

£100=$153 (oz at the mo)

free fall takes it to say $1.43 to the £ so

£100=$143

now im non genius but i'd prefer $153 in my pocket compared to $143 for the same outlay

You got this very wrong, the AuS $ is falling not UK sterling falling.
Once a currency fall in a particular country ie australia, other currencies like £, Euro gets more aussie dollars per £ euro etc.

Say £1 = 1.53 AUS dollars at the moment

When AUS dollars are weak and keeps falling it means £ will get more

Example: £1 = 1.60 AUS dollars.

So in answer to OP question is your friend is right, you will get more if AUS dollar keeps falling.