Well it breached the HK$16 mark: 16.0227.
Crazy stuff.
China is rocking... it's amazing
The bad thing is that the the strong GBP does not help the UK, it hurts over all because of exports and visitor spending.
Do people convert their monthly savings into their home country currency or RMB to protect themselves? I keep reading reports on how the USD will continue (gradually) for the foreseeable future to weaken against pretty much every currency in the world. With the RMB forecasted to continue appreciating against the USD/HKD, we are thinking of converting our savings monthly into RMB. How easy/costly is it to convert monthly a small amount into RMB?
It's trivial to convert up to RMB20,000 per day, but the interest rates available on RMB are negligible. Unless you think the RMB is going to appreciate at, say, 10% per year or more you'd be better off looking for investments in whatever your home currency is.
I am a Finance idiot. I never study Finance in my schooling time; during undergraduate time, only a 2 credit hours Finance course about basic "Supply and Demand".
I noticed HK exchange rate will rise while HK stock market index go down, and vice versa. I noticed these on TV news everytime I watched it, but I didn't really watch or pay attention everyday because I am not really interested to finance issue.
Is that HK Stock Market Index will influence the HK exchange rate?
If yes, then is this almost the right time to change all my unused HK Dollars to other major curency? (Not billion or million, just something less than 100k)
What currency you all suggest?
I have NO confident with USD...ha...ha....ha...Not from finance consideration but from their "leader".......Sorry, for American, I am not anti-America
Ok....so the pund is coming down now and thats because of the turmoil in the financial markets, the prospect of an interest rate rise has all but disappeared and therefore the implied rate in forward interest rates has fallen which means the GBP/USD rate is back below 2.
HOWEVER, with the FED having reduced commerical rates by 0.5% last night to ease liquidity in the stock market fiasco, the exchange rates will move back to over 2 against the USD and over 15 against the HKD.
IMO, the UK may have to follow suite on the FED and also reduce rates next week to ease liquidity back into the stock markets.
Don't convert, just sit tight but also bear in mind that its ok to lose 1-2% on the FX rate if the investment opportunity in the UK is good. You can find find safe Fixed Rate deposit bonds paying about 6.5%pa so this has to be a good trade even if you lose on the FX conversion.