USD Fixed Deposits

[reddevil0728]

No idea why, but feels like it was inevitable for him.

TS was doing a great service to the community, why ban? MODs anyhow lai?

Seems like I’m not the only one who noticed his/her posting style.

 

[churnmaster]

I am holding mainly USD and very little SGD, only convert USD to SGD and never converted SGD to USD.

You can explore the option of using Interactive Brokers, depending if you can wire SGD to IBKR, and charges involved. Ask in the IBKR thread.

For me it’s mostly SGD . . Only USD exposure thru equities and commodities.

Do you ever hedge or plan to hedge the USD/SGD when the FED reverses its stance over the next few months / qtrs ? If yes, have you figured out the various alternatives ?

 

[boroangel]

For me it’s mostly SGD . . Only USD exposure thru equities and commodities.

Do you ever hedge or plan to hedge the USD/SGD when the FED reverses its stance over the next few months / qtrs ? If yes, have you figured out the various alternatives ?

I learned some difficult lessons since 2009 when FED loosens monetary policy, does QE. Back then USD/SGD reached as low as 1.2 if I remember but I held on. Also learnt some lessons when USD/SGD reached 1.45 to 1.5 on occasions in the last decade and I didn't convert.

I plan to have a 50% SGD/ 50% USD portfolio comprising equities and cash. This time, once the FED pauses interest rates hikes or stops QT, I will start converting USD to SGD to reach that ratio.

 

[jayou8]

I learned some difficult lessons since 2009 when FED loosens monetary policy, does QE. Back then USD/SGD reached as low as 1.2 if I remember but I held on. Also learnt some lessons when USD/SGD reached 1.45 to 1.5 on occasions in the last decade and I didn't convert.

I plan to have a 50% SGD/ 50% USD portfolio comprising equities and cash. This time, once the FED pauses interest rates hikes or stops QT, I will start converting USD to SGD to reach that ratio.

Interesting topic on hedging USDSGD risk. May I ask how do you intend to convert USD back to SGD? Does that mean you need to sell your USD portfolio since we will need to have USD delivery first before converting to SGD?

 

[touchring1]

For those who put USD FD in local banks, just want to share info that UOB USD FD is going bonkers. Big jump in interest rates from last Friday.

2.62% for 100K and above.
2.72% for 250 K and above.

Please be aware that USD FD are not insured locally, so that's the risk.

Now 3.4-3.5%.

 

[qhong61]

Now 3.4-3.5%.

Not insured

 

[duhduhduh]

Not insured

Tbh it should be fine unless you think UOB had a major scandal that ends up getting defaulted

 

[touchring1]

Tbh it should be fine unless you think UOB had a major scandal that ends up getting defaulted

qhong is right, too risky. dbs offer over 2% for 1 week and 1 month, auto renew, very good for liquidity and will adjust to higher rates along the way.

 

[Pampers]

DBS now offering 2%+ for 1 day, means I get abt SGD450+ if I put USD200K?

 

[qhong61]

DBS now offering 2%+ for 1 day, means I get abt SGD450+ if I put USD200K?

Per annum?

 

[Pampers]

Per annum?

I count wrong

 

[RedsYWNA]

IBKR already giving 1.83% on USD deposits, less the first USD 10k......

https://www.interactivebrokers.com/... to clients,to potentially earn higher rates.

 

[touchring1]

USD going up, just do nothing already earned 1% interest in just over 1 week.

 

[Pampers]

IBKR already giving 1.83% on USD deposits, less the first USD 10k......

https://www.interactivebrokers.com/... to clients,to potentially earn higher rates.

is the 1.83% rate monthly?

 

[reddevil0728]

is the 1.83% rate monthly?

Per annum. How often do ppl advertise monthly rate siahz

 

[0218crawford]

Just placed 1 month USD FD with DBS.

2.91% p.a. today.

 

[CaptainWu]

Just placed 1 month USD FD with DBS.

2.91% p.a. today.

This is the normal rate and believe Tresures even more. DBS has been giving fairly good rate on USD so far, much better than SCB.

 

[reddevil0728]

Just placed 1 month USD FD with DBS.

2.91% p.a. today.

If got IBKR, can put in US-T for higher yield and also if fancy leverage on it to do options.

 

[0218crawford]

If got IBKR, can put in US-T for higher yield and also if fancy leverage on it to do options.

Yep. If I have IBKR will leave it there since they pay good interest.

Its actually idle fund I pulled out from my TD account which I intend to use for my option trades on Tiger.

 

[boroangel]

For those holding USD and putting USD deposits (and you aren't buying US T bill on IBKR for some reason), please note 1 year on UOB USD FD has reached 5.07%! Almost reaching double since the last time I posted in June.

However, I am still buying short term US T bills and FDs until Q1 and then see how the interest rates move.