That is true...so far I only monitor Aus and Nz only....

Newton's head being hit by an apple has nothing to do with going up lah, so your law has a fault

Actually MYR is not strengthening versus other currencies... its more like AUD weakening against other major currencies. If you check USD vs MYR you will note that actually MYR has been weakening since last week and same time AUD weakening against USD.

And I remember you mentioning about investing in AUD FD when it was above 3.0 conversion and at that time I did mention it will weaken and gave you examples in 2008 and 2010.

Anyway, the point I m replying to your posts on Forex is so that one is aware of the risks of playing/gambling Foreign Currency Account FD and not to assume anything as they are infinite variables to consider unlike investing in MYR FD

This post has been edited by Gen-X: May 23 2013, 03:07 PM

Read that when China slows down most commodities exporting countries'
currency will come down. AUD is considered the most overvalued. RM is surprising considered undervalued.

Here we go again on FOREX, hahaha

Whenever there is bad news/data coming out from China, USA or Australia itself, their currency will drop BUT then again you tell me which currecncy is safer than AUD

MYR undervalued? Sure boh? Oil Palm down and more importantly petroleum prices down... and with our political scene yet to stabilize fully, who is going to speculate MYR?

This post has been edited by Gen-X: May 23 2013, 04:42 PM

My point earlier that MYR is not strengthening as against gsc claim that it is

See the effective % of MYR "strengthening" against AUD is the difference between USD/AUD and USD/MYR. In other words, it's about USD versus AUD and nothing to do with AUD versus MYR.

This post has been edited by Gen-X: May 23 2013, 03:32 PM


Attached thumbnail(s)

http://www.cimbbank.com.my/promo/StepUpFD/

CIMB Malaysia
Get returns of up to 4% p.a. for the next eight months!
Place a minimum of RM1,000 into your Current or Savings Account to enjoy this promotional interest rate.

So is this a good time to buy into AUD FD in local banks ?

Dont waste your time as the amount that enjoys 4% rate is twice the amount you deposit into CASA

That's an excellent question that only you can answer.

If you need AUD in the near future, why not? If you converting back to MYR... god only knows what the conversion rate will be when it matures (or when you decide to convert back after several renewals). You also need to play god and predict if the interest rate will be going up or down in coming months or years and since last year it has been falling.

Edited***

Here is an example:

Last year this time the lowest conversion spot rate was around 3.10 (I know because I was in Melbourne last year this time). Right now at this moment as I am typing the rate is 2.9444, that's 5% difference. So if you had deposited into AUD last year into 1 year AUD FD and get 4.5% interest, you would have thought you got a good deal. But today, if you need the said fund for something and therefore withdraw the FD and covert back to RM, you would actually get less even with the interest earned. And please note, I have yet to even take into consideration the bank's commission of about 1% every time you convert. So effectively you would have lost money even though your principal earned 4.5% interest in AUD FD.

This post has been edited by Gen-X: May 23 2013, 08:38 PM

Thanks ! I guess it is complicated as several questions/situations are involved. It is more definite for people who need the AUD and can park it and use it when needed (in Australia).

Yah many variables in play... late last year I mentioned I will take the gamble and wait till AUD drops below 3.1 before I convert more to AUD to pay my daughter's tuition fee in Feb. But it went up continuously instead until just before RBA meeting early this month. But the bright side is my daughter and son tuition fees are due again next month so average out I can get below 3.1, hahaha

Aus$ below RM3 exchange rate is good for FD because the Aus$ exchange rate usually is hoover above RM3.1. With Ocbc giving additional 5% for one month FD, it helps to cushion the exchange rate loss and exchange rate commission.

Standard disclaimer for most investment instruments that are not guaranteed - Past Performance Does Not Guarantee Nor Reflects Investment Returns

5% for 1 month can hardly cover the exchange loss and commission

Anyway we should stop discussing on Foreign FDs as there is a specific thread for it.

This post has been edited by Gen-X: May 23 2013, 11:58 PM

i can't find the thread for foreign currency fds.

appreicate if anyone can help. tq!

the income from foreign currency fds is forex rate increase. so forex thread is the main thread for foreign currency fds, link https://forum.lowyat.net/topic/2572124/+980.

However, you may say foreign currency fds have deposit interest, i will say interest very less, unless AUD might reach 5% p.a.

If you rich enough and confident on your selected country forex rate, you may try dual currency investment, link is http://www.standardchartered.com.my/person...stment/faqs/en/

ok, thanks.
yes, was thinking of aud as i may have a use for this currency in a couple of years time.

check out aeiou's thread https://forum.lowyat.net/index.php?showtopic=1836833&hl=

Also go to FD V2 Thread and do a search on "Foreign FD" where we had the same discussion on Foreign FD and read cherroy's comments.

This post has been edited by Gen-X: May 24 2013, 04:32 PM

good, tq.

AVFAN, just to add, gone are the days where we can get above 4% interest for AUD FD with our local banks. Nowadays, the interest rate for AUD FD offered by commercial banks are even lower compared to that for RM FD board rates. E.g. 12 months AUD FD is now in the range of 2.5% to 2.7% versus RM FD board rates in the range of 3.1% to 3.6% (if you can consider BR a bank, it's above 4%).

However, in Australia, the banks are still offering above 4% for internet savings account with bonus interest e.g. NAB 4.25% (promotional rate for 1st four months) and ANZ 4.41%. Those of you who wants to continuously enjoying the NAB promo rate, there's a simple way to go about it by simply opening new accounts online

This post has been edited by Gen-X: May 27 2013, 03:09 PM

thanks for info.

was just looking at cimb online fcfd, showing 12mths 3.28% for aud, 3.08% for nzd. 1.0% for sgd and 0.9% for usd.

waiting for speak with the banker and ask some questions first...

This post has been edited by AVFAN: May 27 2013, 03:19 PM

Oh Bro, CIMB and RHB do offer higher rates than OCBC or UOB for their Foreign Currency FD (AUD). Reason being CIMB and RHB Exchange Rate is also higher, i.e. about 1.5% above spot rate as compared to UOB/OCBC close to 1%. Just go check online the Exchange Rates for today and you shall see the difference. And most banks can offer you slightly lower rates if you purchase above a certain amount.

This post has been edited by Gen-X: May 27 2013, 04:50 PM