Hi All,
I exchanged around GBP 300k into SEK a few years ago to buy an apartment in Sweden. The SEK/GBP rate at the time was 11:1. The rate is now almost 13:1 and I’m about to move to the Netherlands and buy a house there.
Should I simply convert my SEK to EUR and take the FX hit or should I hold my SEK until the rate improves (if it does) and translate GBP 200k to EUR now at a rate of 1.4. In short have the SEK and EUR bottomed out against the GBP or are they likely to weaken even more. Guess I will ultimately convert everything back to GBP if when I move back to the UK in a few years.
Many thanks
In my opinion that all depends on if you need the capital right now or if you can remain in the market. I would also recommend that if you need to convert than phase it out and don’t do it all at ones. I think the EUR has bottomed out against the GBP or is close to it, but you should not do anything based on what others think.
I have enough GBP to buy EUR at the favourable rate of 1.4 right now and am not under pressure to convert the SEK I previously bought into EUR. So I could hold the SEK and hope for an eventual strengthening (usually follows EUR) against GBP. Is it worth doing this even though I’m not getting any return on the SEK due to 0% interest rate in Sweden?