Aussie dollar looks good to investors
BenjaminScent andAlfredLiu
Wednesday, October 07, 2009
Hongkongers may plow more funds into the Australian dollar after yesterday's surprise interest-rate hike, as the pace of economic recovery in Australia is expected to continue, market watchers say.
Tycoon Lee Shau-kee, who has been recommending the Australian dollar as an investment since at least April 2007, said yesterday that Canberra's sudden move to raise the interest rate is good.
"This is a good move and it will continue to be good for investment," said the chairman of Henderson Land Development (0012). "It's highly possible for its exchange rate to rise another 10 percent next year."
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Lee sold 10 percent of his stock portfolio in August when the Hang Seng Index hit 21,000 points. He said he used the proceeds to buy the Australian currency when the exchange rate was 80 US cents to A$1.
Yesterday, after the interest rate decision, the Australian dollar rose to a 14-month high of 88.76 US cents, taking its gains this year to 26 percent
It is one of the best currencies to invest in now, said OSK Securities business development manager Kingston Lin King-ham. "It will keep on rising for the near term," Lin said. "The country's economy can move faster than other countries."
The currency will be a good investment because of other countries' demand for Australian resources, he said. "The raw material prices will keep on rising," Lin said, adding Australia may raise interest rates further in one or two months.
However, UBS foreign-exchange strategist Brian Kim warned that the Australian and New Zealand dollars are the currencies most at risk from an unexpected correction in risk appetite.
Bank of East Asia (0023) is offering an interest rate of 3.3125 percent on 12-month Australian dollar time deposits of at least A$1,000.
Hang Seng Bank (0011) is currently offering a 2.55 percent interest rate on 12-month Australian dollar time deposits of at least A$1,000 opened using online banking.
HSBC customers can get an interest rate of 2.45 percent for a one-year time deposit of at least A$2,000, while Bank of China (Hong Kong) (2388) is offering 2.5 percent interest on one- year time deposits.
BenjaminScent andAlfredLiu
Wednesday, October 07, 2009
Hongkongers may plow more funds into the Australian dollar after yesterday's surprise interest-rate hike, as the pace of economic recovery in Australia is expected to continue, market watchers say.
Tycoon Lee Shau-kee, who has been recommending the Australian dollar as an investment since at least April 2007, said yesterday that Canberra's sudden move to raise the interest rate is good.
"This is a good move and it will continue to be good for investment," said the chairman of Henderson Land Development (0012). "It's highly possible for its exchange rate to rise another 10 percent next year."
ADVERTISEMENT
Lee sold 10 percent of his stock portfolio in August when the Hang Seng Index hit 21,000 points. He said he used the proceeds to buy the Australian currency when the exchange rate was 80 US cents to A$1.
Yesterday, after the interest rate decision, the Australian dollar rose to a 14-month high of 88.76 US cents, taking its gains this year to 26 percent
It is one of the best currencies to invest in now, said OSK Securities business development manager Kingston Lin King-ham. "It will keep on rising for the near term," Lin said. "The country's economy can move faster than other countries."
The currency will be a good investment because of other countries' demand for Australian resources, he said. "The raw material prices will keep on rising," Lin said, adding Australia may raise interest rates further in one or two months.
However, UBS foreign-exchange strategist Brian Kim warned that the Australian and New Zealand dollars are the currencies most at risk from an unexpected correction in risk appetite.
Bank of East Asia (0023) is offering an interest rate of 3.3125 percent on 12-month Australian dollar time deposits of at least A$1,000.
Hang Seng Bank (0011) is currently offering a 2.55 percent interest rate on 12-month Australian dollar time deposits of at least A$1,000 opened using online banking.
HSBC customers can get an interest rate of 2.45 percent for a one-year time deposit of at least A$2,000, while Bank of China (Hong Kong) (2388) is offering 2.5 percent interest on one- year time deposits.
