Anyone else stuck with US dollar too?

[Watcher]

Is USD FD rate in US high? it is ... maybe can put there...
i do not think USD will drop more than 1.44.
Historical low was ard 1.45 or so bah... then economic crisis it went up.

Suggest you wait for global downturn and see how.

OR...

go into import export business lor... help pple get things in US... sell them here in SGD... conversion rate put 1.65 and add in your service charge hee hee

No. Historical low is about 1.39. USD FD rate will fall shortly since they are tied to the bond rates.

Edit: According to this on 17 Nov 1996, 1.39930

Edit2: Searching a little farther back, 03 May 1995, 1.39030

 

[gooseberry]

Yes, USD is looking very unfavourable now (trading at all time low against Euro, CND has reached parity with USD, other high-yield currencies are expected to increase their gain on USD over the next year at least), S$ may not grow as much compared to USD as the other currencies, but think it still will grow.

Changed some forex yesterday, but should have waited until today - could have gained an extra S$500 - dammit. heheh... oh well, it happens.

 

[Astin]

No. Historical low is about 1.39. USD FD rate will fall shortly since they are tied to the bond rates.

Edit: According to this on 17 Nov 1996, 1.39930

Edit2: Searching a little farther back, 03 May 1995, 1.39030

Can do a search back to 1970s? It may be interesting...

 

[boroangel]

For those hoping that USD will climb back up, forget it! Not for the next 3-5 years. The fundamentals are against it. What fundamentals? Low economic growth is one. They are lucky to avoid recession in the next 18-24 months. Huge budget deficit, huge consumer debt. These are very long term structural issues that may not be solved even in 5-10 years time.

What to do? Buy commodities which are in USD. Gold, precious metals, etc. These will continue to climb since demand is outstripping supply globally for the foreseeable future.

As for your salary, talk to your HR to negotiate a hedge against the continue to fall. I expect that by 6-9 months time, USD/SGD will be around 1.4.

Do u think its advisable to sell now while we still can? Or maybe switch to other currency like swiss francs? Say if convert to SGD...and US undergoes a recession....wont singapore economy be affected too and that will similarly see the SGD drop?

Paiseh...really inexperienced in this area so talking in real layman terms....

 

[Kit]

I've got some US$ in my paypal acc from some transaction in Ebay. Think I'll leave them there and use them for future online transactions.

 

[Majest1c]

No. Historical low is about 1.39. USD FD rate will fall shortly since they are tied to the bond rates.

Edit: According to this on 17 Nov 1996, 1.39930

Edit2: Searching a little farther back, 03 May 1995, 1.39030

i will not expect USD to drop to 1.40 unless there is really a big economic shake up across the globe .. 1995/96 is the depression period rite..

if it really drop to 1.40 convert all SGD to USD liao :bsmilie:
wait for it to bounce back :angel:

 

[Watcher]

Do u think its advisable to sell now while we still can? Or maybe switch to other currency like swiss francs? Say if convert to SGD...and US undergoes a recession....wont singapore economy be affected too and that will similarly see the SGD drop?

Paiseh...really inexperienced in this area so talking in real layman terms....

Swiss Francs? That is fine as it is a "safe" currency. In the short term, if you want to earn a bit, it is expected that Euro will go up, so will AUD and CAD since they are commodities-producing countries. If you want a safe haven, CHF (aka Swiss Francs) are fine.

Well, as for recession, although SG depends a lot on US, we do a lot of export to CN, IN as well as the other Asean countries. Furthermore, AU is strong, so is EU. We are going to have the F1, IR and other big things that would expect to bring in $$$ into the market. As long as CN doesn't fall, we should do rather well.

 

[Watcher]

i will not expect USD to drop to 1.40 unless there is really a big economic shake up across the globe .. 1995/96 is the depression period rite..

if it really drop to 1.40 convert all SGD to USD liao :bsmilie:
wait for it to bounce back :angel:

Frankly, the sub-prime morgage (CDO) debacle is causing quite a shakeup. It is a domino effect that started when the Americans defaulted on the housing loans. What happens now is that the US economy is going down, with consumer confidence dropping to 2 year lows (70% of US's GDP is consumer driven), and most there are up mostly in debt one form or another (housing morgage, student, credit card). Americans have not been saving money in the past 20 years, and the ratio is getting worse.

The twin deficit of trade and current account makes a tight tension where China is buying the debts of Americans to fund their (American) spending using T-bills and yes CDOs. When the returns are poor (for various reasons), what happens? The dai-yi-long now come and ask for the money back. These two structural deficits will take years to get under control.

Right now, it is not as bad because no one wants to see that happens. We have to watch what happens in the next 6-9 months. Right now is about $0.09 from $1.40 (600pips). The MAS will not allow a sudden drop. OTOH, they have no choice but to allow the SGD to slowly strengthen to prevent inflation from getting too high since large amount of $$$ in coming into SG due to the major projects.

 

[boroangel]

Wa kaoz......drop again!!! At the rate its dropping will be level with sgd within 3 months?!!!
I am going to sell it on saturday now....think would be wiser to transfer the money to say sgd while meantime keeping my future salary still in usd...that way i have deposits in both currency and it sorts of hedge against each other? I cant decide yet on whether to sell them and transfer all to SGD or split part of it and some convert to SGD and maybe anotehr part to swiss francs? Anyone has any opinions or recommendations?

 

[esmondng]

if u got spare cash you dun need and can hold for some time, u shld buy in more now. (dollar-cost averaging)