Is it right to invest in USD now? Which bank offers the best rate?

With the fall and rise of the US dollar recently, it becomes apparent to many that it may be a good choice to invest in the USD right now. The USD has recently risen from 1.34 to 1.41, and those who have catch on the trend may have earned themselves some pennies, however, is this trend going to continue? Is it right to invest in USD now?

With the US credit woes spreading to other countries, like Japan which face its first contraction in 6 years, and Europe whose economy is forecasted to have stalled, the USD is expected to rise against the yen and euros.

Singapore economy is affected as well, our full year 08 growth forecast has been reduced from around 6% to 4-5%.

With the fall in commodity and crude oil price recently, it is expected to reinforce the idea that the global economy is going down, and it will further boost the rise of USD.

However, i prefer to take a contrarian view of the USD trend. especially against the Singapore dollar. I do not see the price of commodity and crude price going down in the long term, and I expect MAS to continue its tightening policy against USD, though it will let the rise of SGD against the USD to be at a slower pace. Inflation will still be a bigger problem than economic growth in Singapore. Also, I expect US economy to be worse off than Singapore's, and to encourage exports from US, especially if the upcoming trade reports show that US exports have fallen substantially, US will not allow USD to appreciate as everyone has expected.

In the short term, USD/SGD will rise, however I expect the rate to fall to around 1.30 within a 12 month period.

So where is a good place to place your bet on USD when it falls to such at attractive rate of 1.3?

OCBC USD Time Deposit offers an attractive rate of 1.7% to 2.4% per annum for minimum placement of US$5000 for a period of 1 month. This is the best offer in town for the commoner like us!