One for the currency guru's

[VetteG]

I have just returned from working in Russia and have tranferred a significant 6 figure sum to my USD account (the Russian bank wanted to transfer from Roubles to USD and then to Sterling and get 2 lots of commission!). Should I keep the money in USD for a while in the hope that the Dollar will strengthen against the Pound or should I get it into Pounds or Euro's asap?

Thanks

G

[Timmy33]

I don't think anyone could or should tell you what to do, simply because no one really knows what will happen.

The HSBC currency strategists believe that the £/$ rate will fall to around 1.75 within 12m. In part because the US has had it's housing correction and priced in a recession......we are only just getting started in the UK.

I am inclined to think that with the £ at a near record high of @ $2, versus a historic mean nearer $1.6 that there is far more liklihood of the £ falling versus the $ than vice versa.

You might consider a spread of deposits in Y, $, euro, and some £. IMO the weakest one of these 4 will be the £ over the next year.

But as I say, who knows.

HTH

[VetteG]

Thanks for that Timmy, I knew it was a tough ask, but hey if you dont then......

My intention is to spread it about in various funds and accounts, but since some will be in Sterling this led me to the question.

Thanks again

G

[WWESTY]

I'd agree re the £ being likely to fall - really can't see it getting higher.

If you need help/quote for any transfers let me know.