Discussion
I need to pay one of my suppliers approx 100,000 USD.
The rate has gone done from about 2.2 to 1.98 in the last week, I probably do not need to pay it for about another 3 weeks.
Does anybody have any feeling of what the USD might do, would it be wise to buy the dollar rate now and hold them until i need to make the payment or is it likely to edge back up in my favour over the next few weeks.
The rate has gone done from about 2.2 to 1.98 in the last week, I probably do not need to pay it for about another 3 weeks.
Does anybody have any feeling of what the USD might do, would it be wise to buy the dollar rate now and hold them until i need to make the payment or is it likely to edge back up in my favour over the next few weeks.
The Fed did cut the rate at which it lends money to banks from 6.25% to 5.75% but the main US interest rates were unchanged again this month (for the 13th successive month) at 5.25%. If they did go down that would tend to weaken the dollar (assuming UK/Euro rates didn't go down too) ie take it back over $2 to the £1.
It hasn't been 2.2. 2.02 I think you mean.
Who knows what's going to happen, but there's nothing to indicate it will change significantly in short / medium term.
It hasn't been 2.2. 2.02 I think you mean.
Who knows what's going to happen, but there's nothing to indicate it will change significantly in short / medium term.
Edited by Deva Link on Friday 17th August 22:30
half and half is not a bad idea as long as your transaction costs aren't too high.
very hard to predict GBP/USD at the moment, it came down hard mainly on the back of GBP/JPY carry trade puking so it's really anyones guess over the next couple of weeks.
2.065 was very roughly the recent high.
very hard to predict GBP/USD at the moment, it came down hard mainly on the back of GBP/JPY carry trade puking so it's really anyones guess over the next couple of weeks.
2.065 was very roughly the recent high.
I don't think that you should base your currency hedges on what people on a car site "feel" about the future movement of rates.
If you did not have this payment, woudl you be speculating on rate movements?
If not, then hedge it now, as you are exposing you business to unnecessary risk.
If you did not have this payment, woudl you be speculating on rate movements?
If not, then hedge it now, as you are exposing you business to unnecessary risk.
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