USD fixed Deposit % going up

[boroangel]

Anyone noticed?

I been observing DBS USD fixed deposit rates recently and it has been going up steadily. For example for 100K it was around 1.6 to 1.7% in November/Dec and today it is showing 2.015%

Will it keep going up steadily?

 

[BBCWatcher]

Will it keep going up steadily?

My crystal ball says....

Only the U.S. Federal Reserve really knows, but for what it's worth the futures markets take the consensus view that the Fed will not raise interest rates at its next meeting in about two weeks. As I write this, the futures markets assign only a 1.5% chance (very low odds) of a 25 basis point increase.

The futures markets will, of course, try to interpret whatever the Federal Reserve might say (or not say) about its future intentions.

 

[cybercom8]

Means usd depreciating against sgd again?

 

[BBCWatcher]

Means usd depreciating against sgd again?

If you can predict the future exchange rate with reasonable or better accuracy, you could make a lot of money.

 

[Shiny Things]

Anyone noticed?

I been observing DBS USD fixed deposit rates recently and it has been going up steadily. For example for 100K it was around 1.6 to 1.7% in November/Dec and today it is showing 2.015%

Will it keep going up steadily?

Yeah, probably. All USD interest rates are ticking slowly higher as the Fed tightens policy.

If the Fed's pace of hiking slows down below what the market expects (2-3 hikes this year), then rates will go down.

 

[boroangel]

If it does go up to say 2.5%, it would appear to me much better to just leave money in a USD FD rather than trying to get rental yield from property (without all the hassle of dealing with tenants, potential periods of vacancy etc)

 

[chopra]

whats e dbs forex spread

 

[Shiny Things]

If it does go up to say 2.5%, it would appear to me much better to just leave money in a USD FD rather than trying to get rental yield from property (without all the hassle of dealing with tenants, potential periods of vacancy etc)

You know the USD FD comes with a giant slug of FX risk, yeah? It's like taking a long USD/short SGD position equal to the size of the fixed deposit; the 2.5% interest could get swallowed up by exchange rate moves.

 

[Mr.Canberra]

USD Fixed Deposit is good only if you have a firm plan to use X amount of USD at a future date regardless the exchange rate against your base currency.

 

[Mr.Canberra]

whats e dbs forex spread

Forex traders will not use banks for FX matters as they can get it at spot rate or close to it. Unless you are dealing with millions which they will give you good deals. You tell them your target price. If they can do it they will close deal with you. Non leverage.