Dealing with fluctuating Exchange Rates

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Dealing with fluctuating Exchange Rates


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Old 30th July 2019, 02:39 PM
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Default Dealing with fluctuating Exchange Rates

I'm currently living in the US but I'm planning to move to Italy in about 6 months. I'm about 70% decided that I would like to buy an apartment when I move there (versus rent).

My concern is this. At the moment, the EUR - USD exchange rate is 1.12, which when looking back at history is more favorable for me (with my savings in USD) than it has been the majority of the history of the Euro.

Knowing that it's impossible to predict the future, but at least wanting to minimize the regret I'd feel if the exchange rate went up to 1.2 or 1.3+ where it has been before, does it make sense to consider trying to covert my USD to EUR now, to cover the potential purchase of a home? Or has anyone else handled this type of concern using more complex possibilities like currency options?

I think the question I'm posing is perhaps more psychological than financial, but I'm curious to hear about others' experiences about dealing with the uncertainty of fluctuating exchange rates.

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Old 30th July 2019, 03:46 PM
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Ooh, exchange rate fluctuations have long been one of the banes of many expats' existence.

I know people who track exchange rates obsessively (IMO) to try to catch the "best" rate when transferring any amount between countries. And then there are those like me who admit that I'm not willing to obsess about these things, and so I transfer when I need the funds and at whatever the rate is when the transaction happens.

Many FX services will execute a transfer when the exchange rate hits a specific point - if you set up for them to do this for you.

You might want to take a look at some of the various FX services and see what sorts of "bells and whistles" like this they have. I've found this comparison website useful just for seeing what services are available: https://moneytransfercomparison.com/...-money-abroad/

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