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airjampanam
Topic Author
Posts: 243
Joined: Tue Sep 09, 2003 3:06 am

Strongest Currency

Wed Oct 08, 2003 5:06 am

No matter where I go, it appears that if you have British pounds you are in the money exchange wise.
Can someone explain the "strength" of the old pound sterling?
 
ryanb741
Posts: 5058
Joined: Thu Mar 28, 2002 6:36 pm

RE: Strongest Currency

Wed Oct 08, 2003 8:37 am

Well the pound is fairly strong at the moment but if you had bought the Euro a year ago you would be seriously in the money now. I reckon the US dollar will be a good buy in 3 months - the Japanese Yen is more risky but could have massive rewards. Also, the Aussie Dollar has strengthened well over the last 6 months.

Interestingly, the Pound sterling has been strong even through a major war and a shaky economy. I reckon the Euro will go down once the mickey mouse former Eastern Bloc countries join next year, but to think that the Euro is now worth 20% more than the US dollar is crazy, yet it's true. Overvalued IMHO. Watch the dollar fly in 2004.
 
VonRichtofen
Posts: 4296
Joined: Sun Nov 05, 2000 3:10 am

RE: Strongest Currency

Wed Oct 08, 2003 8:40 am

The Canadian dollar has strengthened considerably too, going from around $0.65USD to around $0.74USD in less than a year.
 
QANTASforever
Posts: 5791
Joined: Tue Apr 03, 2001 6:03 am

RE: Strongest Currency

Wed Oct 08, 2003 11:47 am

lol - Anyone have any idea why the Falklands pound is worth (approx) US$1.50??

Falklands Islanders must make a lot of overseas vacations.

qff
 
csavel
Posts: 1407
Joined: Wed Jan 24, 2001 9:38 pm

RE: Strongest Currency

Wed Oct 08, 2003 12:18 pm

Qantasforever, I'll bet the Falkland Islands Pound is tied to the British Pound, which is strong now. When the British Pound is strong, so is Falkland Islands Pound. I think the Hong Kong dollar is pegged at 7 to the US dollar, so when the US dollar is weak, so is Hong Kong's and vice versa. A lot of other currencies are like that.
 
tbar220
Posts: 6706
Joined: Wed Feb 02, 2000 12:08 pm

RE: Strongest Currency

Wed Oct 08, 2003 1:37 pm

Just a question:

Why does everybody compare the strength of a certain currency related to the value of the U.S. dollar?
 
b744
Posts: 477
Joined: Thu Dec 30, 1999 5:48 pm

RE: Strongest Currency

Wed Oct 08, 2003 2:06 pm

Not everybody compares currencies to the USD. Here in NZ, our NZ$ is regularly compared to the AUD, EUR, JPY, GBP etc.

BNut when talking about currencies on forums such as this, it is helpful to compare your local currency to a commonly-known currency, such as the Euro, British Pound (or US Dollar).
 
User avatar
B747-437B
Posts: 8958
Joined: Thu May 30, 2002 6:54 am

RE: Strongest Currency

Wed Oct 08, 2003 2:22 pm

The strongest currencies to have been holding since January this year have been the Thai Baht and the Indian Rupee.

Of course that also hurts folks like me who export services from India as our revenues are pegged to the US Dollar which has declined while our costs are pegged to a steadily appreciating Rupee.
 
ryanb741
Posts: 5058
Joined: Thu Mar 28, 2002 6:36 pm

RE: Strongest Currency

Wed Oct 08, 2003 5:30 pm

Actually the Thai Baht has just started going down against the pound again, which is good for me as I have just bought another house in Thailand  Smile
 
JA54123
Posts: 128
Joined: Thu Aug 16, 2001 11:55 pm

RE: Strongest Currency

Wed Oct 08, 2003 10:15 pm

One reason why Pounds, Dollars & Euros are the preferred currency in the world is that the countries that use & back them are very strong financially & militarily, & are safe havens for investment. Also, these currencies tend not to fluctuate near as bad as weaker currencies throughout the world.
 
bobrayner
Posts: 2038
Joined: Sun Apr 27, 2003 8:03 am

RE: Strongest Currency

Thu Oct 09, 2003 12:52 am

In terms of getting currency used around the world... it's partly a positive feedback loop. The more people in other countries accept a currency, the more people will carry it overseas, which tempts more people to accept it... and so on.

The military aspect doesn't matter as much. Look at relative imports and exports - at the moment, the Eurozone has larger imports and exports than the USA, despite having lower GDP, and less military power. The former two are driving up €-acceptance slowly, year by year.

Also, there are lots of ex-colonial currencies that were tied to pre-€ currencies and are consequently tied to the € now. The $ will still be widespread in the Americas!

Personally, I just think the $ is a bit undervalued at the moment. If you only ever use the $ for comparisons, then that would make most of the world's other currencies seem overvalued.  Big grin

Acceptance is loosely related to exchange rates &c, but it's not the same as 'strength' (which can be taken to mean different things). Stability helps.

I reckon the Euro will go down once the mickey mouse former Eastern Bloc countries join next year

Mickey mouse? Given that they have to meet some fairly stringent criteria in order to join, they can hardly be that bad.

the Euro is now worth 20% more than the US dollar is crazy, yet it's true. Overvalued IMHO

The number itself is irrelevant; just the differentials. Would you say that the Japanese Yen is wildly undervalued because it's worth 1% of a dollar?
 
Banco
Posts: 14343
Joined: Mon Oct 29, 2001 11:56 pm

RE: Strongest Currency

Thu Oct 09, 2003 1:34 am

Currencies are a bit volatile at the moment. It's partly because the whole world is having a tough time of it economically. The US has talked the dollar down to get some breathing space, which has been part of the reason for the Euro's rise. Of course, now the Eurozone countries are squealing because of export difficulties, and so are the Japanese. Thus, they'd like to get the exchange rate lower, but the trouble is one can only rise at the expense of another, hence the reaon why there have been such surges over the past couple of years.

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