June Tech Tips – How to keep track of exchange rates when sending money overseas by OFX
Locally we’re seeing the AUD maintaining levels just below 70 US cents, largely impacted by poor US data and increased expectations of further rate cuts.
A common challenge people experience when transferring money overseas is navigating fluctuations in the market exchange rate.
Put simply, an exchange rate is the monetary value of one currency when compared against another. When one currency strengthens over another, it can make importing goods into the country cheaper for local businesses however, it can also make the cost of purchasing goods or services from that country, more expensive.
Currency fluctuations are often impacted by both micro and macro events, such as changes to interest rates, inflation levels, economic growth and of course political climate (think Trade Wars and Brexit) to name a few.
Knowing when to transfer money overseas or to bring it back into Australia will depend on your personal circumstances. Some business might be able to set a ‘Limit Order’ and wait for the market to reach a certain rate before transferring money, some may lock in today’s rate of exchange to pay suppliers in 1,2,3 or 6 months’ time, and some may need to make an immediate transfer.
In an ideal situation, the best time for your business to transfer money overseas is when the value of the Australian dollar is at its highest however, markets can be unpredictable which is why our currency specialists are on hand to help support your business in development a currency plan that suits your business needs.
These tools can help you keep track of how your chosen currencies are performing.
- Sign up to rate alerts and set a specific target for your chosen currency pair. When the rate is reached, you can be notified direct to your inbox or via a push notification from the OFX app.
- Daily market updates are a great way to understand how your desired currency is performing in real-time and the impact local and global events are having on the valuation.
- For even more insight into the markets, currency charts can help provide an in-depth look into current and historical exchange rates.
OzForex Limited trading as “OFX”. ABN 65 092 375 703; AFSL226 484. Please read our PDS and FSG at OFX.com. OFX is regulated in Australia by ASIC.