FX – 2 months later

I made buy recommendations on 3 currencies; AUD, NZD & RMB 2 months ago. Let’s see how the results compare against the recommendations:-

Source: www.oanda.com

 

 

As you can see, AUD & NZD continue to strengthen against the SGD, mainly driven by rising commodity prices. RMB maintains its weakening stance against many major currencies as China strives to drive export growth, hence a RMB play would not have turned out well. Personally, I still like RMB in the long run and would advise accumulating RMB as China embarks on its path to liberalise its currency moving forward. This would enable RMB to become more “tradable” and “investor-friendly” gradually.

In dollar terms, a $10,000 Foreign Currency Fixed Deposit in AUD & NZD would have yielded $900 & $700 gains in 2 months respectively before interest gains (about 2.5% per annum). A similar play on RMB would have lost $500. The nett gain would have been $900 + $700 – $500 =$1,100 in 2 months, not bad if you are cashed up but still do not dare to invest in riskier stocks or real estate. Of course, stock markets have gone up at least 30% in the last 2 months but high rewards for high risk-takers.

Have you made money in the last 2 months?