Dollar Hits A New Low
This week the US Dollar sank to 25 year lows against the Pound, AU/NZ Dollars and other currencies. There’s a saying that money flows to where its treated best.
What does that mean? It means people are converting their money into currencies with the highest yields.
Yields on the AUD,NZD and South African Rand are quite a bit higher than here in the US. Their economies also seem to be growing faster than the US’ too. SA Central bank Governor Tito Mboweni said last week that interest rates were ‘too low’. The South African Reserve bank raised the benchmark lending rate by 50 basis points on June 7th and may raise them again on Aug. 16. Not surprizingly, the South African Rand is sitting at a six week high.
I don’t know if its already too late to the party, but buying foreign currency ETFs or stocks with foreign exposure might not be a bad idea. I’ve done very well with Anglo Amercian (AAUK) and BHP Billinton (BHP).
If you found this post helpful, consider donating to my coffee fund!![[del.icio.us]](http://images.del.icio.us/static/img/delicious.small.gif){kind=small}
- Is The Economy Recovering? Had dinner last night with an old family friend at a fancy restaurant. One of the topics that came up for discussion was the stock market and whether the recent rally was sustainable. While I didn't have any concrete information about the numbers, I felt that the rally in the......
- Why the Dollar Will Collapse! A few days ago I posted an article on why the dollar hasn't collapsed. Robert Kiyosaki has a good counter-argument on why he thinks it will.The Last Days of the Dollarby Robert KiyosakiTuesday, October 17, 2006In 1966, I was traveling the Pacific aboard a freighter. I was 19 years old......
- Are Stocks Better Than Other Investments? There's always someone at a party who's claiming their investment asset of choices is the best. In 1999, it was stocks. In 2005, it was real estate. Right now, I'm claiming its Canadian Income Funds and commodities like gold. But is there an investment that's actually better than something else?......
Related Websites
- Fools Born to Buy Debt Allow Wall Street Exports to Boom With the fall of the stock market, the collapse of the economy became clear. The real driving force behind it, however, was the failure and dropping confidence in the largest bond market of the world. Known as structured finance, it has led to a crisis which rivals the Great Depression,......
- Australia Raises Interest Rates: How does This Affect Me? Perhaps the biggest financial news this week was that Australia, the Land Down Under, is the first G20 country to raise interest rates since the current (or just recently passed, depending on whom you ask) financial crisis began. Yes, earlier this week Australia raised the interest rate offered by their......
- Top 3 Reasons for Collecting Money Money is something which has been collected almost as soon as it was first brought into existence. While the only people who could afford to collect money in the past were the wealthy, these days it seems that there are more people collecting money than ever before. The reasons for......
[All content is copyright of Living Off Dividends & Passive Income]
July 6th, 2007 at 3:33 am
I wouldn’t be so upset about the dollar dropping a little bit. There is at least one positive side: American products are cheaper and more competative. And that’s not too bad!
July 6th, 2007 at 9:03 am
excellent points.
i’ve set myself up to profit from a declining dollar by buying gold, commodity stocks and canadian income funds.
who’s upset? I’m rejoicing
ok, not really. foreign travel is getting very expensive