Dollar falters against other currencies

The US Dollar has just started to slide in value against other major currencies. Time for action.

If you have USD, this could be the time to sell dollars and buy into GBP, Pounds Sterling, or Euros.

GBP: USD. In May 2010, the USD was worth $1.43 to £1. It was trading this morning a £1.5970 to £1.

 However, the Dollar has started to slide back already. It has lost 2 cents in a week. Good time to sell dollars? Likely!

EUR:USD. In december 2009 you could buy €1.50 for every $1. during 2010, the EUR strenghened against the Dollar to around €1.21 to every $1. recently, the dollar has strenghened against the euro to around €1.32 to $1.

Today, it looks like the dollar is weakening.

The main message?

• If you have a large amount of Dollars… do something! If you want to buy your currency ahead of time, you can. With just a 10% deposit, you can fix the usd rate now, and pay the balance at a fixed point in future but keeping the current rate.
• If you want to buy Dollars, talk to one of our currency dealers and they will set a rate at which they will contact you so that you can buy your Dollars at the best price possible.

The easiest way to look at this is; if you need to change your money at some point and you need to achieve a certain amount, then you have these options:

1. Exchange all of your Dollars at today’s rate. This is called a SPOT Contract. It ensures that you fix the rate today and you get your money transferred, to where it needs to be, in good time.
2. Exchange some of your Dollars and risk the exchange rates going in your favour by the time you need to have the rest of the money changed. This is HEDGING in its simplest form. It does mean you can sleep at night, safe in the knowledge that you’ve made sure you don’t lose too much if the rates don’t go your way.
3. Exchange your Dollars, at today’s exchange rate, with just 10% deposit. Then pay the balance when you need the money in the future. This is called a FORWARD Contract. This is the way that most of my clients are now exchanging their money. By paying just a 10% deposit, our clients can relax, safe in the knowledge that they have the right amount of money for their property purchase.

Of course, this doesn’t just apply to Dollars. It applies to any tradeable currencies.

Please contact a dealer here and let them know what you would like to do.

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