Dear Mr. Tan,
I will like to have some advise from you. Now NZ$ exchange rate is 1.0447 bank rate for deposit in FD. Do you think is it the right time to deposit NZ$ fixed deposit now? Thanks.
M
REPLY
I am sorry that this is not my area of expertise. It is difficult to time the market.
I have some of my money on NZD deposit. I think that the current level (which represents a fall from the recent high) should be okay, and the interest rate is above 8% per annum. All the best.
The current SIBOR short term rate (1 mth) for S$ is very much lower than for 1 year rate. This indicates that the deposit rates may rise in future from current low levels. Any contrarian views?
ReplyDelete1 mth FD rate is of course lower than the 12 mth FD rate. Some folks argue that the 1 mth rate although lower, is "safer" due to the potential of currency fluctuation.
ReplyDeleteHi M and Mr. Tan,
ReplyDeleteReserve bank of New Zealand (RBNZ) recently announced in their last meeting that they will expect to cut base borrowing rate (now at 8.25%) by end of this year.
This has two implications for you:
1) New Zealand dollar has been falling on heightening expectation of rate cut ahead. (Fact: NZDUSD has fallen from 0.79 to 0.75 since the release of the news) This means it is now cheaper for you to buy New Zealand dollars.
2) Rate will fall in the near future for sure and that makes it worthwhile to lock in at the current interest rate with Fixed Deposit.
In fact, my POEMS clients has been exploring the option of converting to NZD for NZ fixed deposit using POEMS FX Invest. If you like us to share with you further, you may call our Phllips Future Marketing Desk at 65380500 or email me at limcht@phillip.com.sg
Thanks,
CT