Some interesting currency moves today

[Wd40]

http://www.bloomberg.com/news/articles/ ... -singapore

Rajeev De Mello, who oversees about $10 billion as head of Asian fixed-income at Schroder Investment Management Ltd., said by phone from Singapore. “When the market was bullish on Asia and bearish the U.S. dollar, the Singapore dollar did exceptionally well.” Now comes “a reversal of that trade,” he said.

[Wd40]

Nice chart that show how different currencies have fallen against the dollar in the last 1 year

http://www.bloomberg.com/professional/k ... r-numbers/

[Wd40]

More burning of reserves?

http://www.bloomberg.com/news/articles/ ... e-above-1-

[JR8]

More burning of reserves?

8.4% of the total national reserves, spent strengthening the S$ so far this year. Ouch!

[Barnsley]

More burning of reserves?

8.4% of the total national reserves, spent strengthening the S$ so far this year. Ouch!

There goes the CPF money

[Wd40]

http://www.businesstimes.com.sg/banking ... e-shorting

More detailed and pretty dire report. The SGD is expected could fall to as low as 1.44-1.47 by the end of the year. Now is a good time to move out of it. Although I wonder which currencies stand to benefit, USD ?, CHF ?, anybody else ?

[JR8]

http://www.businesstimes.com.sg/banking ... e-shorting. More detailed and pretty dire report. The SGD is expected could fall to as low as 1.44-1.47 by the end of the year. Now is a good time to move out of it. Although I wonder which currencies stand to benefit, USD ?, CHF ?, anybody else ?

Speculators just love to go and attack vulnerable pegs. Even more so maybe when there is a whole heap of stubborn reality-denying 'Asian Pride' tied up in the matter.

Short the S$, long anything where the economy is growing, and rising interest rates are being discussed. Simple, printing money if you have the time and inclination (and the account to do it).

The ball is in SGs court on this, it won't go away as long as current policies stay the same. Meanwhile something like 8% (IIRC) of reserves a quarter are being used to douse the worst flare-ups and flames, yet the fires still burn.

SGs move!

[JR8]

Greece to Berlin:



http://www.telegraph.co.uk/finance/comm ... abyss.html

[Primrose Hill]

the proposed SG savings bons? what do you guys think?

[Wd40]

How many basis points is the interest rate going to be Yes its going to be in basis points not even a percent, then what's the point especially when our home currencies are so much better



India interest rates for fixed deposit 8.75% and it was the 3rd best performing currency last year after the USD and CNY.

At this point you can even buy a gold etf and it is likely to outperform those SGS savings bonds.

[JR8]

the proposed SG savings bon[d]s? what do you guys think?

Heard nothing re: such, but I'm not a great follower of locals news. Do you have a link?

p.s. following WD's comment, my div's on my UK stock portfolio currently yield north of 8%, then for better or worse, I add the value change of the underlying stocks. It's likely a case of add if the FTSE rises year on year. There's the further appeal of it being in my home currency, so no x-currency woes/risks.

Have you defined what you're seeking to achieve, and for what outcome (in what currency/when etc)?

[Wd40]

Here you go:
http://www.channelnewsasia.com/mobile/b ... 56338.html

[JR8]

If your limited alternative is having funds on 'FD' earning peanuts then it might be worth a go.

But if you think about having to put in some leg work, considering a stock account, even the most boring of boring boring behemoth, predictable diversified and boring stocks like Unilever yields 4.25%

[Thanks for the link WD!]
'Those in the Savings Bonds programme will earn interest that is linked to long-term Singapore Government Securities (SGS) rates. The Savings Bonds’ interest rates will increase over time. This means the average interest rate will be higher the longer the Savings Bonds are held. The SGS yield for the last 10 years has been between 2 and 3 per cent per annum, said MAS.'

Are the SGn banks' offerings so much safer than Unilever? I'm not persuaded. Sounds more like an opportunity for them to borrow funds cheap, and scalp a fat margin on top for themselves.

[Wd40]

Meanwhile FTSE is down 1.5% now, I wonder why, I thought the growth numbers were good

[JR8]

Meanwhile FTSE is down 1.5% now, I wonder why, I thought the growth numbers were good

Yeah they were, better than expected lol/sigh. So now via the market's 'perversity prism' it's worried. Worried the market/economy is actually doing ok, and so the BOE will reduce easing/money-printing.

Well, that's my guess. But it wouldn't surprise me (one bit).

---- times like these I wonder off, OT, and try and look for new and interesting recipes. So that when I come back in a few days, the market might have righted itself back to some kind of rational sense...