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.
|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|
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.
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