Re: Puzzel of interest
On Thu, 05 Jun 2003 11:36:06 +0900, Declan ...
>
>Brett Robson wrote:
>> On Wed, 4 Jun 2003 11:50:01 -0400, "Kevin ...
>>
>>>>2. Where should I have put the money?
>>>
>>>Outside Japan. My checking accout has a 1.31% APY. Put the money there.
>>
>> The US dollar is at a 2 year low to the Yen.
>>
>> http://au.finance.yahoo.com/m5?&a=1&s=USD&t=JPY&c=2
>>
>> So you would seriously suggest someone put money in US dollars to get a 1.3%
>>return in the face of a strong possiblity of an adverse movement in the exchange
>> rate?
>>
>>(if you don't understand the above, I'm sure Declan would be happy to fill you
>> in).
>
>Actually I don't think I would be. Real exchange rates and hedges are a
>bitch.
>
OK we will keep it simple.
1. The yen is at a 2 year low to the dollar.
2. Daily Yomiuri 5 June 2003
"You do not have to be an expert [Kevin] to sense that something big is
happening in the foreign exchange market. Just recently, the Bank of Japan sold
a whopping $20 billion worth of yen to prevent it from becoming too strong
against the dollar."
[of course that will last as long as the money does.]
"The weak dollar may be far from the intended result. It could be, rather, a
market consequence of a runaway US current account deficit, depleted US
household savings and the bursting of the stock market bubble."
---
"2 out of 3 ain't bad" - Meat Loaf
"1 out 2^64 is a real bitch" - Original
Fnews-brouse 1.9(20180406) -- by Mizuno, MWE <mwe@ccsf.jp>
GnuPG Key ID = ECC8A735
GnuPG Key fingerprint = 9BE6 B9E9 55A5 A499 CD51 946E 9BDC 7870 ECC8 A735