How to identify the timing to invest in foreign currency, this

The foreign currency investment which gains popularity with the high interest

Foreign currency deposit and foreign currency MMF and FX (foreign exchange margin transaction) and the like, foreign currency investment is one of the investee whose popularity is high in the individual investor.You think in one of the reasons where popularity is gained that it can achieve the point, higher interest than the Japanese interest.

Zero interests it was cancelled say, as for the interest of circular time deposit still being low actual condition.For example as of 2006 November 13th, at the SONY bank, as for the interest of 1 year thing time deposit 0.485% (under 1,000,000 Yen of 100,000 Yen or more) vis-a-vis being, as for 1 year thing foreign currency time deposit of U.S. dollars 4.13% (under 10,000 U.S. dollars respectable amount).Approximately when you look at the number, 10 times simply, foreign currency investment being visible after all attractively, stripe now the shank.

Point 1: When investing, rate of exchange

But, foreign currency investment becomes investment to the financial supplies of the foreign currency.As for the foreign currency which it can invest, as for U.S. dollars and the Europe of course, it is great dollar and NZ dollar, furthermore the English pound and the Canadian dollar and the people origin etc various.First because exchanging fund of the Japanese Yen to these foreign currencies it means after to invest on the financial products, when exchanging the Japanese Yen and the foreign currency, rate of exchange becoming standard, it is the case that in the future it keeps being used.

that is, if you want to invest in foreign currency, exchange rate i’m trying to invest now is an appropriate level is required and can say with confidence. because, because of exchange rate at this time will be the key to the break-even point.

in, on the next page, what do i do with more thought assess the timing to invest in foreign currency, let’s take a look at how to examine the break-even point and.

point2: to determine the exchange rate in the investment period

exchange is not how it works that we predict is very difficult to. just because the analysis, 100%does not hit the perfect. simply, regardless of the city to predict the future, exchange rates when you invest in foreign currency does not change. that is, exchange rate at the time to invest, what high against currency movements of the past, knowing whether cheap or will be very important.

for example,2006years11month13the date of, the dollar yen exchange rate118is about yen. this exchange rate, how much for the past, the yen against the dollar, why or depreciation of the yen against the dollar is that. of the extent to which past it was and is, since the investment period depends on the person’s investment style, period is different from the past. if day trading1from day1referring to the sun, 1if the medium-and long-term investment at least in1referring to the years around, wind will be called.

if the investment so far considered, whatever the result, i think i might be able to invest in foreign currency with confidence.

point3: check the break-even point

by the way, if you want to invest in foreign currency, but tend to be misled by the height of the interest rate, surely what comes out of how much profit when you switch back to japanese yen exchange rates are what make a profit for a much knowing in advance that it is important to. break-even point, can be determined by the formula below.

money to invest in japanese yen÷future, money denominated in foreign currency become part of one’s personality=break-even point will be to break even (exchange rate)

check if you put the break-even point, when considering the exchange rate above okay if exchange is moving to this extent you can know in advance the line which. if there is no law to deal with anything when loss occurs, just to fret over the movement of the exchange. in order not to be so, i know the break-even point is a good pre-.

in the next article, i would like to introduce the analysis tools and analysis, including how to leverage that when i invest in foreign currency.

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