Investing in Foreign Currency Deposits

Dear Mr Tan,

What are your views about investing in foreign currency deposits, such as New Zealand dollar?

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REPLY:

Earlier this year, I wanted to invest in New Zealand deposit, as it offered an attractive interest rate. I spoke to a banker from that part of the world. He told me to be careful, as the NZD had already appreciated a lot.

I decided not to make that investment. Since then, the NZD had appreciated by another 5%. I missed that boat!

Many of the currencies, such as AUD and NZD, are at a historical high level. I have decided to keep my savings in SGD to earn 2.5% to 3%.