Only now do I know the pain of going long on a currency at a 25 year AUD low with a hard option & needed to unravel. Ouch.
Here is any easy way to lose money: transfer cash from one side of the world to the other, when the currency you want is at a 25 year high, and the one you’ve got is down among the boondocks, kicking it’s metaphorical heels in the gutter. Yes, you’ve guessed it – I’ve transferred a whole heap of money from the UK to Australia, at $1.63 to one GBP. Great if you’re an Aussie backpacker off to see London: downright suicidal if you’re trying to buy a house in Oz. Just last week it was at 1.75, and I’m now kicking myself for not moving over the cash then. More than kicking myself infact: the basic mistake of hoping the pound would go higher has seen me sitting on the wrong hedge, and then some. It’s cost me 4 grand, just waiting for a week. Aghghgh