Australian Currency Went Pass US96c
May 21st, 2008 | by winsonlee |I believe Australian dollar breaking the US96c yesterday is a news everyone would have knew about. It is at a level of 24 year high and Reserve Bank of Australia may have another interest rate rise to 7.5 per cent to control the inflation. In this post http://winson-talk.com/2008/01/14/pb-foreign-currency-fixed-deposit/ dated January 14th, 2008, I mention about putting money in foreign currency in Fixed Deposit in Malaysia local bank.
Since AUS currency has appreciated towards USD, I decided to make a search on how much AUS has appreciated towards MYR. On January 14, the exchange rate for AUS/MYR is 2.92637 and now it has went up to 3.11501 which is equivalent to 6.446%. Presume the interest rate during then was 7.40% for 12 months term deposit. Effectively you are getting a total return of 13.846% per annum.
