Exchange Rate AUD vs MYR (Newbies here)

Lately, there are a lot of uncertainties in our world financial stability. Take for example, Australian money. I have put my focus in checking on AUD performance for few days.

There is some news saying that the exchange rate for AUD will reduce again in the next 5 months. As of the exchange would drop to how much, that is very uncertain. Some says AUD will drop 50 cents further. However looking at the trend, it seems to be going up. As of 20th Oct, AUD-MYR is 2.447, compared with Sep'08, reaching 2.9 exchange rate.


I'm thinking of small investment into this money thingy and is still very new with the research. But, taking this as a step into another part time income, here are some of my thoughts about AUD-MYR.

Let say, I took out RM1000 into this investment. If I am to purchase the AUD based on the currency stated, in 20th Oct, it would means, I am to get ~AUD 408. OK.. Let's say in 1/2 years from now, the rate rise up to the normal as per Sep'08, which is 2.9. By exchange them, it means RM 1,183.20.... Indirectly, my money had increase by RM183.20 .. Hhmmm... 10% profit.

Today's rate are : 2.396

Comments

Kok said…
DD,
Just a piece of advice here...

They have rumoured that the AUD is going to decreased again but we never know. Let's say if you buy it now and it decreased to RM2.0 for $1, how are you going to cover the lost? Or maybe you'll say, maybe it'll increase! Yea, but how long does it going to take?

Nowadays, economy is very unpredictable. Unless you have some money to spare, if not, don't invest too much in currencies. That's what I think. At the end of the day, it's still your decision cause I don't want you to blame me if the case is not otherwise. Hope you understand. :)

You can still have lots of other investment like unit trust or some other investment. Why not try those? If you want, I can get more info for you on that.
Dav DiDi said…
Yeah! I know the rumors.. heard that it will decrease further in 5 mths time, also there are rumor it will increase ..

Anyway, I'm not a risk taker ... only will play small and play by changing them in money changer, not at bank or opening a share account..that is too risky for me ...

Well, unit trust ... I have no confident at all and it is too slow.. high amount, long term .. by the time i get back, the inflation already goes up .. so same as back to square one :)
Unknown said…
I am also amatuerly following the AUD-MYR rate. I strongly advice you to avoid money changers (paper currency) as the rates offered are always worse off than in a bank. You can try (i am not recommending it, just telling you) Public Bank's AUD FD, whereby you buy an AUD FD, which pays very high interest (around 7+ % p.a.). This way, even if you lose some money when the AUD drops vs the MYR, you still increase your total AUD holdings. If it goes up, even better. If you hold paper currency, your AUD amount stays the same (unless you add your own zeroes e.g. 100OOOO) hehe

You are right about unit trusts too as they have many fees such as up front 5+ % service fee, and an annual fee of 1+%, regardless of fund performance.
Dav DiDi said…
Wow !! That's a good advice!! Thanks for the recommendation ..

Yeah, I heard about the AUD FD in Public Bank and if not mistaken, the min is 10Ks... which if I put my 10Ks in it ... my saving would be very low ... some more .. its near to year end.. CNY, xmas, etc, etc....

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