advice required on buying with dollar

B

brendan32

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Hi All, Great web site....Im at the start of a property deal in Thailand and i have to use dollars for this deal. I transferred 10% deposit last week and with in one day it cost me 300 euro more because of exchange rate.I will have to transfer 112k dollars in 6 weeks time .Can anybody give any advice on this situation or is it a wait and see game.
 
You picked a really bad time to do this. Over the last year the Euro has been great for us against the dollar. But in the last few weeks it has weakened considerably. NOt sure what is driving it at the moment, but as a casual watcher for the last 8 years I would say its always worse to buy dollars during the summer months versus the winter. I always felt it was due to holiday makers coming over.

By the end of the year most people have predicted it to be back in the 1.30's. You could save between 5k -10k+ with swings from the low 1.20s to low 1.30's.

Can you delay?
 
The No votes in the French and Dutch referendums have been the driving factors in the recent euro drop.
That said it is impossible to predict what lies ahead in terms of currency fluctuations. I
I suppose you could reduce your risk by getting 50% of your dollars now and then purchase the remainder in 6 weeks time.
 
Hi Lads,
I have to make my next payment in 6 to 8 weeks time and im still waiting on the finance. I am thinking of laying off some risk by buying 50% dollars soon, but with it dropping to 1.22 im thinking I should hold out and see if it recovers to 1.25 as the traders seem very fickle.
By all reports it should recover to 1.30 and possible 1.45 before the year is out but who knows. Im now an avid reader of www.ft.com it has soom great reports on this matter but it seems like a pure gamble. Perhaps i should put it in my paddypower acc .

Thanks for the advice Bren
 
Brendan, the reality is that noone knows what is going to happen to the exchange rates in the future. Detailed and carefully thought-out predictions can be made - but they are only that - predictions. Events can always intervene in unexpected ways to cause big short or long-term swings.

If you want certainty in what you will pay, it should be possible for a bank to guarantee you a fixed exchange rate at a specified date in the future. They will charge a fee for this - but you have the benefit of knowing exactly how much you need to pay.
 
Hi Euro, Yes what you say make sense and so im going to check out the different banks to see who will do me the best deal on this.

Cheers Bren
 
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