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When Saving Trumps Investing
25-08-2019, 12:14 PM.
Post: #11
RE: When Saving Trumps Investing
If I am not wrong, SG monetary policy is a gradual increase in SGD strength while keeping out export competitive. So there are already a background disadvantage of holding other currencies which needs to be considered.

Event like Brexit was (unexpected?) event which can have impact on the x-rate. Speaking of pound, I rem it was about 3 times SGD back around 2004. A few events has caused it to drop to about 1.7 times now.
7-7-2005 London Bombing - 3.0 0 -> 2.7
2008 GFC - 2.7 -> 2.0
2016 Brexit referendum outcome 2.0 -> 1.8
2016- 2019 Brexit drama 1.8 -> 1.7

Well in about 2 months or so, we will see if the new UK Prime Minister can deliver a miracle. If UK really leave with a no-deal Brexit there will probably a sharp fall in pound but that is likely to one of the low point in pound until another major event crashes it.

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