Would The Recent Increase Of Interest Rates In Australia Affects The Currency Rates To Foreign Country?

3 Responses to “Would The Recent Increase Of Interest Rates In Australia Affects The Currency Rates To Foreign Country?”

1. Tim W Says:
   

   In general when the interest rate rises the domestic currency appreciates. If country A raises rates to 5% while country B had rates of 4.5%, speculators will realise that they would get better returns by purchasing securities in country A. This will raise the demand for country A’s currency so the currency will appreciate. My personal opinion (as in this is not investment advice so don’t blame me if things turn out otherwise), would be to keep hold of your Australian $s as they are likely to appreciate relative to the Ringgit.

2. Batako Says:
   

   G’day,
   It has been rising since last year but no one can predict for sure what will the Reserve Bank will do for the next quarter. However the AUD rate has also risen quite alot compare to last month.
   If you are afraid of the increase in exchange rate (which will be likely, given the very good economic climate in Australi), I suggest send as much money as possible and split them into term deposit and high interest saving account (like the one offered by ING, ME or some other merchant banks).
   Hope this helps. Good luck for your study

3. Forex Critics Says:
   

   The Foreign Exchange (Forex) is a wonderful market to trade in, but it’s very easy to lose a bundle if you are just starting out. For those considering taking the plunge for the first time, my advice is to seek as much information as possible, such as at this website, or one of the more popular free forex information sites such as http://www.forex-critics.com/blog — Good luck.

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