PPRuNe Forums - View Single Post - UAE Dirham to Dollar Peg
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Old 9th Jun 2007, 04:17
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Quokka
 
Join Date: May 2003
Location: Golden Road to Samarkand
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Remember gentlemen, there are other currencies and other places that one can park one's savings earned in the ME

It's a punt, but then most things in life are... but I'd be looking for a currency or two from countries where the interest rates are forecast to rise... because that's where the big punters move and park their cash in amounts that alter currency valuations on a global scale.

Like anyone, they look for the best interest rate. But, when that interest rate is no longer appealing, a very large amount of cash is moved out in a very short amount of time.

For share market punters, watch for a downward trend in your currency... it's almost inevitably followed by a dump in the share market as the foreign private equity is withdrawn from the market... and it can only end in tears for the Mums & Dads investors who never saw it coming...
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