Monday, June 11, 2007

High interest rate in Australia Dollar

I saw many advertisements in the newspapers offering interest rate of more than 6% per annum for flexible savings accounts. This is quite attractive.

During the past two years, the Australia dollar has appreciated significantly. Apart from the high interest rate, an external investor also benefitted from the exchange rate.

However, an expert told me that the Australia dollar is now too high. I am undecided, if I should invest some of my short term funds in this currency.
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1 comment:

范老师 said...

Aussie to Sing is at it's 10 year peak, hence you might want to wait for it to come down to about 1.25 before committing. The resistence level is around 1.31 (in my opinion). However, if you are planning to retire or invest in Oz, dual currency products may be your cup of tea. It offers higher interest rates then traditional foreign currencies FD. The risk of losing your capital is small if you hold on in the long run as the high interest rates will buffer against unfavourable FX rates. FYI, I am an amatuer DIY investor who dabbles a bit on currency products. Really enjoy reading your blog! Keep it up!

June 11, 2007 11:28 PM

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