turn kroners into dollars?

Financial Planning - Financial planning in general. (Moderated) 

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Subject Author Date turn kroners into dollars? Mike 02-25-2008  Re: turn kroners into dollars? beliavsky 02-25-2008
Posted by Mike on February 25, 2008, 3:46 pm Hello. I'm an American but have recently moved to Norway, and I'm working for a Norwegian company. I know little about buying other currencies as an investment strategy, but given the relative weakness of the dollar compared to the kroner, I'm wondering if it might be a good idea to take my Norwegian earnings and convert them to dollars, hoping the dollar eventually rebounds. No? Thanks for any advice. -------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup. Posted by on February 25, 2008, 4:50 pm > Hello. I'm an American but have recently moved to Norway, and I'm > working for a Norwegian company. I know little about buying other > currencies as an investment strategy, but given the relative weakness > of the dollar compared to the kroner, I'm wondering if it might be a > good idea to take my Norwegian earnings and convert them to dollars, > hoping the dollar eventually rebounds. In the long run, where do you expect to live? If your savings will be consumed in the U.S. (in retirement, for example), I recommend converting your savings to dollars. No currency forecast is implicit in this recommendation. If you want to maximize returns and are willing to tolerate some risk, convert kroners to dollars only if short-term U.S. interest rates are higher than those in Norway. Monitor the interest rate differential periodically. You will be doing the "carry trade". -------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup. Similar Threads Posted buying dollars July 4, 2008, 7:18 pm