Questions tagged [foreign-currency]

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1answer
35 views

Loss for currency exchange, is this taxable/deducible?

Hej, I live in Sweden since 2019. I had money in a US Bank account (earned in 2018 and 2019) that was sitting there without being invested. I've therefore decided to transfer it to SEK and start ...
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0answers
49 views

Portfolio diversification into different currencies

Does it make sense to diversify the portfolio into different currencies if they are in any case correlated with each other or is it not so?
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4answers
2k views

What are the advantages/disadvantages of investing in foreign currency?

I am learning about brokerage accounts and how investors diversify their portfolios within their brokerage or other investment accounts. One of the things I have noticed, especially in the U.S., is ...
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1answer
94 views

What does “foreign currency” mean in this context?

I'm looking to sign up for the Chase Freedom Unlimited credit card as I'm about to make a >$500 purchase and would like to receive the $200 bonus offer. This purchase would be made on a foreign ...
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0answers
53 views

Can I really exchange money in Forex?

Suppose I've got Euros. Suppose I need dollars. How can I transfer/exchange my euros into dollars in Forex? I know I can do it in any currency exchange stall. But Forex currency rates look more ...
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0answers
31 views

Billing my clients in different currencies, does it matter?

I have a Canadian LLC (with a Canadian dollars bank account) and recently got my first offshore client from Singapore. In our signed contract my rate is in Canadian dollars, and then my client asked ...
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1answer
59 views

In case of an unsecured loan creation in a non-domestic currency where will the loan payment money come from? [closed]

In case of an unsecured loan creation in a non-domestic currency where will the loan payment money come from? I have learned that it is possible for the money to be created and exist outside of their ...
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0answers
17 views

International investing and currency fluctuations [duplicate]

Lets suppose a British investor has some participations (say, for a value of £10000) in a Britih (not hedged) fund or ETF whose underlying assets are in US dollars, but that is denominated in pounds ...
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1answer
456 views

Historical telegraphic transfer buying rate for a currency to INR

The rate of exchange for conversion into rupees of income expressed earned in foreign currency should be the "telegraphic transfer buying rate of such currency as on the specified date" as per the IT ...
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1answer
47 views

When are foreign exchange market hours?

This is probably a daft question. I am been googling for answers but still can't be sure about the answers I got from google. I am trying to send money from Malaysia to the UK through Revolut. But I ...
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1answer
29 views

In foreign mutual funds, what is the conversion fee?

I have found a mutual fund whose denominated currency is Euros but its underlying asset's currency is US Dollars (it tracks the S&P 500). The fund can be found here. While inspecting its fees, I ...
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2answers
72 views

Invest in an US ETF or fund being a UK citizen

Is it possible to invest in a US ETF or fund being a UK citizen, without having any sort of bank or brokerage account based in the USA? I'm not talking about these ETFs / funds that hold US assets ...
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0answers
35 views

Converting some of the rainy day fund to EUR

I live in a country where EUR is accepted at most shops, but it is not the official currency. I am wondering if it would make sense to convert a portion of my rainy day fund to EUR, to be somewhat ...
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1answer
83 views

How should near-instant forex transactions be handled for taxes?

This is what I mean by a "near-instant" forex transaction. I deposit GBP in my broker account with the goal of buying a US-based company stock, but, when I make the trade, the broker automatically ...
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1answer
140 views

FX options for retail trader

I would like to trade options on the FX market, say EURUSD and GBPUSD. I have seen that there are options on the CME that have FX futures as underlying and also some options on spot on the ...
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2answers
266 views

Is it better to invest in US than to invest in India considering inflation rate and devaluation of INR

I am a US resident with Indian nationality. To calculate annual real gain on my investment in mutual funds in India, I am following below mentioned formula: Annual Real Gain = Annualized Return - ...
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2answers
64 views

Small Business foreign exchange

I run a small Australian business that has the requirement to pay a relatively small but not insignificant (say USD10k-20k equivalent annually) amount of invoices in foreign currencies (EUR and USD). ...
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2answers
124 views

Why do currency rates have an effect on the value of goods? [closed]

It is common to hear explanation like "Yuan has lost value, this helps Chinese exporters". Why does currency exchange rate have any effect at all on the price of goods? Let's say I own a widget ...
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0answers
75 views

Canadian nomad, USD earnings - how to invest/preserve currency

I'm a Canadian tax resident who moves around a lot. Exchanging currency stresses me out so much if I think about it that I basically have just decided to accept volatility. I work online, and am paid ...
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1answer
52 views

Currency option case

I am a bit lost with understanding the naming used for holding positions in the currency options and their payoffs. If I want to buy the European option with an amount of x USD (EUR put/ USD call), ...
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5answers
11k views

Why do money exchangers give different rates to different bills?

I was traveling to India recently and was buying a few hundred US dollars on my way as the money exchanges didn't have any Indian rupees with them. At the exchange counter, they didn't have 100 dollar ...
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1answer
257 views

How the uniformity in exchange rates are achieved?

Suppose it takes 1200 euros to visit Suriname. and I am from India. Now first i converted 1200 euros to inr which came as 93689 rupees . Then just out of curiosity, I tried converting 1200 euros to ...
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1answer
338 views

What is the degree of “nickel rounding” that occurs with Swiss francs?

I am trying to implement currency handling for Swiss francs (CHF). In Canada, we have removed our penny from our currency circulation, but digitally the penny amount ($0.01) still exists (bank ...
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1answer
143 views

Buying foreign currency as a long term investment [closed]

I live in a country with an uncertain, collapsing economy. The exchange rate compared to USD and EUR@ is sky rocketing that effectively wiped off 20% of people's savings in just 8 months! See USD-LKR. ...
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2answers
96 views

AUDUSD vs. Apple's bad results in China - WHY is this positive correlation (it has nothing to do with AUD!)?

I would appreciate if some trading fundamental analysis expert could please explain me this. Recently I lost basically all my entire life savings, everything i worked for, for over 3 years, waking up ...
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1answer
259 views

Who Is responsible when a currency transaction is mistakenly converted by an intermediary bank?

My client transferred USD from the US to my USD currency account in Ireland. Their intermediary bank converted the funds to Euros so it hit my USD account in Euro, was converted back to USD by my bank ...
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1answer
201 views

How to offset currency exchange losses?

Situation forces me to repatriate foreign revenue valued in Euro to USA, which is not ideal at this moment because the Euro is at a low. To counter this, would it make sense to buy Euro in USA at the ...
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2answers
173 views

How should I think about salaries in New Zealand relative to the United States? [duplicate]

Let's imagine I live in the United States and make about 100,000 USD. If I move to New Zealand for a few years, I expect to make about the same, but denominated in New Zealand dollars. That is, make ...
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1answer
54 views

Posting invoice in different currency

I've got all my transactions organized in CAD. Now I've got a new customer that'll pay me in USD. I can open USD bank accounts to handle this, that's not a problem but in GNUcash I created a new ...
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1answer
2k views

What costs do banks incur on processing credit card refunds in foreign currency?

When a credit card transaction is in currency different to the one of the card, it is pretty normal for banks to charge a 1-3% fee associated with the currency conversion. Some banks do this by using ...
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2answers
104 views

Futures and forward contracts are very different from each other

** Assume two traders enter into a one-year (March 2019) Euro futures contract at a futures price of 1.1220 physically delivered. Regardless of the spot price on the settlement date, if the spot ...
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2answers
122 views

Hedging against currency risk

Is there a hedging method against currency risk without lowering returns ? Classic hedging methods like forwards, futures options, all have a cost and don’t remove risk “for free”.
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1answer
84 views

Forex instead of futures as a hedge

Why don’t companies use forex trading as a hedge for their foreign exchange risk instead of futures ? Forex is much more liquid than futures, easier to have access to all your positions anytime, ...
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2answers
231 views

Determining Futures price on the delivery date

When traders don’t get out of their fx futures positions before they expire, on the delivery date, is the amount exchanged the specified price on the contract when it was signed or the spot price ...
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2answers
88 views

Investing in currency, long term

Given the low expectation that currencies go bankrupt (at least, main currencies like yen or pound): Is it a viable strategy to just buy currency (the currency proper not some future), and wait until ...
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1answer
118 views

How to sell some euros and buy rubles?

I would like to sell some euros in an online exchange and buy rubles. My question is, once I buy rubles how do I withdraw them in my Russian account? Also, how to deposit euros? I know about some ...
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2answers
4k views

Buy stock in Canadian dollars or US?

I am located in Canada. I've been buying US stocks(listed on a us stock exchange), my question is, should I buy them in Canadian dollars or convert to US and buy? I have tried both, my broker ...
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4answers
2k views

Are there alternatives to double currency account to manage payments in different currencies?

I get paid in US dollars (USD), but I live in Hungary, where fiorint (HUF) is used. Right now my bank account has two accounts, one in USD, one in HUF. I receive the money on the USD account and I ...
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0answers
191 views

Difference between buying a NYSE-listed company in USD or in EUR

Let's say I'm a European living in Germany and a company is listed only on the NYSE in USD. On my trading platform I can buy shares of this company either on the NYSE in USD or on Xetra in EUR. When ...
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7answers
10k views

Losing Money with Norbert's Gambit

In attempt to avoid the usual 1.5-2% exchange fees levied by brokers, I perform Norbert's gambit: I purchase DLR.TO in CAD (Canadian dollars) from TSX, journal it over to DLR.U.TO, and then sell the ...
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1answer
79 views

How to detect currency rates changes?

I know the factors (like supply and demand) but how the economics know the value of a currency in a certain time exactly? They couldn't possibly take all the factors in the universe instantly into ...
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1answer
65 views

Stock not available at home country nor at their local market - where should I buy it

I would like to buy a stock of a company, unfortunately I don't have access to the stock in my local stock exchange nor do I have access to the stock exchange of the country of the company. But I ...
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1answer
95 views

What and which side determine the change in exchange rate

Usually I withdraw money from my account in my home country's currency, to where I live, so the conversion rate is applied and I get the money in the currency of the country I live in. I am very ...
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0answers
51 views

How does one book a currency exchange loss?

How does one book a currency exchange loss? Let's assume: I have an account in GBP. I have an account in USD. I pay taxes in USA. Let's assume following transactions: I made 100k GBP in the ...
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4answers
2k views

How to move money between U.S and non-U.S bank accounts?

In the U.S, whenever I want to move money between my U.S bank accounts, I simply link them once using their respective routing and account numbers, and then initiate ACH transactions between them ...
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1answer
44 views

What should I consider when factoring fluctuating exchange rates into risk/return of overseas stock trading?

I live in Australia, and I'm utterly a novice investor, but after ending up with some shares in CYBG after NAB divested itself of its UK business I started thinking/learning about overseas investments....
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1answer
127 views

How do resident foreign currency accounts in India work?

I live in India, and I'm considering opening a resident foreign currency account, to receive dollars from outside India. Is the balance (in dollars, say) automatically converted to rupees when I try ...
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1answer
1k views

Can I make a foreign currency transaction for friends buying online outside India?

I have a couple of friends whose debit cards do not work on international sites (outside India in USD or CNY). I have used my debit card few times to purchase items (total value around INR 30k) for ...
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1answer
73 views

How to invest in Japan's stock market from the UK

I live in the UK. I would like to invest in an Asian stock market, say Japan's, ideally in the main index, in order to have exposure to the currency rate change in addition to the index exposure. How ...
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1answer
122 views

How to manage foreign investment allocations

I live in a country that has over the last year gone through some serious currency volatility based on political/economic uncertainty. I made a decision towards the end of last year to move a decent ...