Currency speculation - end of year roundup
Back on the 25th July I declared that sterling was clearly overvalued against the dollar, and as such I would be buying dollars through Citibank in an attempt to profit from its inevitable rise.I've periodically updated how its going on this site (usually inaccurately - I declared in November there was $2000, when in fact there was nowhere near that much). Anyway here's the final year tally:
Paid in: £800
Dollars held: $1,631
Average exchange rate realised: 2.038
Current exchange rate: 1.984
Current sterling value: £822
So a gain of about 2.75%, and although the account does pay some interest so it's probably a bit less than that solely due to exchange rate movements, one should also calculate it on the average amount that was in the account, and that would show a higher return.
So it's looking OK.
Labels: currency speculation
posted by Matthew @ 12/22/2007 11:14:00 AM
Comments: 2
