Monday October 27
 
17:00
 
Why The Yen Is Strong

From the BBC:

Earlier on Monday the Group of Seven (G7) industrialised nations issued a statement warning that the strength of the yen was a threat to economic stability, which was taken as a threat of co-ordinated action to reduce the value of the currency.

While the yen briefly weakened, it soon climbed back towards Friday’s 13-year high against the dollar.

The yen has been strengthening as a result of the end of the carry trade, in which traders borrowed the Japanese currency and used it to buy currencies with higher interest rates.

As the difference between Japanese rates and those elsewhere in the world has fallen, traders have been unwinding the carry trade, which means they have been using other currencies to buy yen, which has boosted the Japanese currency.

This makes sense. Interest rates in Japan are almost 0%. I always send my money back to the UK to take advantage of better interest rates. The difference between me and Japanese, however, is that I am in no hurry to transfer it back since money in the UK is useful to me. The Japanese seem to be transferring it back even though the rate is terrible.

One of the few exchanges rising was the Seoul market, which reversed early losses to close up 0.8% after South Korea’s central bank cut its key interest rate from 5% to 4.25% at a rare, unscheduled meeting.

There are some real amazing bargains to be had at the moment with the difference between the Yen and GBP, Korean Won. A Nikon D700, for example, at 40%+ cheaper in Korea than Japan – it is usually 40% more expensive.

Saturday October 25
 
23:42
 
In These Days Of Financial Doom…

…there’s only one thing you can do: spend all your money before it becomes worthless!

Friday October 24
 
17:42
 
146.84

Every time I transfer money from yen to pounds the rate drops like a whore’s pants. Last week I transferred when Xe was showing around 174. As I write this now, the rate is 146.84.

A few months ago I transferred at, what was it, 206? 204? Now.. blimey.

When will this craziness end?

From The Times:

The prospect of lower interest rates makes holding sterling less attractive compared with the dollar. Official US interest rates are much lower at 1.5 per cent, leaving less scope for further reductions.

In Britain, a cut to 4 per cent next month looks quite possible while some economists are predicting it could be down to 2.5 per cent next year. That could drive the pound down to $1.50 by Christmas according to Citigroup economists. Of course, forecasting currencies is a mug’s game and some rivals are predicting the pound will end the year at about $1.80.

Currently the pound is $1.55.

In the time of writing this article the GBP/JPY rate has fallen again to 144.91 144.51 144.18.

Britain’s official currency will soon be replaced by the peanut.

Wednesday October 8
 
10:20
 
I Must Not Visit Korea

The exchange rate shift has caused some excellent opportunities:

Black MacBook in Japan: 179,000 Yen.

Black MacBook in Korea: 1,589,000 Won.
Yen equivalent price: 119,212 Yen.

Ok, so that’s based on mid-rate which is not achievable – but still, that’s the top of the range MacBook for the equivalent price of the bottom of the range MacBook. It would be very tempting if the machines were not getting replaced soon.

D700 in Japan: 324,300 Yen – 10% (cashback in points): 292,000 Yen.

D700 in Korea: 3,390,000 Won.
Yen equivalent price: 253,174 Yen.

Again that’s mid-rate which is not achievable – however, I’ve seen 3,125,000 Won on Korean auction sites which means that an inshop price in the camera area near Myoeng-dong or in Yong-san would be cheaper. That price would be very tempting if there was an international warranty. It might be possible to get a Grey-market import though – those are often imported from Japan and would have a Japanese warranty. It would need to have been imported before the rates changed, however.

Tuesday October 7
 
10:33
 
176.896

Yen/GBP.

Jesus.. If only I had transferred that money a few months later. Still that’s nothing compared to the thoughts of “well what if my bank goes bust”…