askST: What to consider before putting your money into foreign currency fixed deposits

You can make losses if the foreign currency ends up weaker than the Singdollar during the term of the fixed deposit.  PHOTO: REUTERS
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SINGAPORE – Foreign currency fixed deposits are not as risk-free as fixed deposits in Singdollars. The interest rates may look attractive but you should consider some pointers before putting your Singdollars into foreign currency fixed deposits.

If so, you will be affected by foreign exchange movements during the term of the deposit, so you will need to keep track of the exchange rate at the start of the fixed deposit and its maturity.

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