Cut loss on Australian Dollar Investment

Australian dollar (commodity currency) was badly affected in recent years with the slowdown in the China economy. Australian dollar was at its highest at S$1.305 on 11 April 2013. Between then and now, Australian dollar lost 20.8%. See table below.

Date AUD/SGD Change %
28 Sep 2012 1.280 NA
11 Apr 2013 1.305 +1.9
27 Jan 2014 1.112 -14.7
8 Sep 2014 1.174 +5.5
19 Sep 2014 1.139 -2.9
26 Sep 2014 1.118 -1.8
3 Feb 2015 1.036 -7.3
18 Mar 2016 1.033 -0.3

Source: Yahoo!

At the start of 2016, Australian dollar was even below $1.000 parity with Singapore dollar.

I had waited long enough, and I had decided to cut loss on my Australian dollar fixed deposit yesterday. The contract rate was S$1.028 for A$1. The loss realised was 14.3% on cost of investment over 34 months. I realised half of my A$ deposit and kept the other half. In this way, my exposure to Australian dollar is now halved. To tell the truth, I am more relieved that I took this action.

Copyright © 2016, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

Advertisements
This entry was posted in Financial Management. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s