Dollars to Euro, now or later?

Rooneysdaman

I need to change a significant amount of money (in the form of a US cheque) from dollars to euro. Was disappointed today to find the rate has gone up to 1.28, it was 1.22 last time I checked a few days ago. I have two options, take that rate and convert now or put the money into a dollar account and convert later.
My problem is that I am going to need the money pretty much as soon as the cheque clears as am purchasing a house. So my choices are change it over now or change it over in 5-6 weeks time. I am clueless about exchange rates and how they trend etc. Would like to hear opinions. Thanks!

unclebill98

How long is a piece of string?

Rates have been up in the high 1.30 to 1.50 for the majority of the last year.

Why not book a rate with your bank if the amount is so high and make sure you get the best deal.

Jet Black

Cant really say. The start of the year the dollar was very weak. About 2 months the euro weakened a lot but that was because of problems (bailouts) Now the dollar seems to be getting a little weaker.

As bill said its hard to tell. At this stage I dont think the dollar will get stronger. But thats just my opinion.

cooper38

i think if you have a us dollar cheque it will take longer to exchange. Best thing is to try and call your bank and another bank or banks to see who can give the best exchange rate. Also call transfermate in dublin, they have a us dollar euro graph
http://www.transfermate.com/en/exchange_rates_table.asp?currency=USD&curr_lim=EUR

ive changed cheques with the banks before and they dont commit to an exchange rate so its worth shopping

unclebill98

cooper38 wrote: »

i think if you have a us dollar cheque it will take longer to exchange.

ive changed cheques with the banks before and they dont commit to an exchange rate so its worth shopping

Your not right with that.

Banks have two options. Either negotiate the chq on the day presented or send it on collection. If its done on the day you get that rate, if its sent on collection you get the rate on the day it comes back to the bank.

So even if you shop around it can mean nothing cause they may not negotiate the chq on the day and can send it on collection. So 9/10 people will end up using there normal bank cause of the red tape associated with lodgement of very large f/x chq's.

Rooneysdaman

Thanks for the responses. I did shop around and found the differences in rates that each bank offered to be negligible. I chose to convert at the rate I was given today by my own bank 1.2683 rather than take the risk of losing more money on the exchange in a few weeks time when I need the money. I can assure you my question wasn't motivated by greed, every euro won or lost on the deal represents something I can or cannot do with the house - it needs appliances, tarmac & a bunch of other stuff.

unclebill98

Your best bet is to go to your own bank armed with what rates the others are offering.

Btw, did they offer you a better rate than what they advertised?

Rooneysdaman

Btw, did they offer you a better rate than what they advertised?

Yes, I got a 'tiered rate' that they had to phone Dublin for because it was such a large amount. However, I was not told anything about this tiered rate until I came back to them with news that I'd shopped around. My bank is Permanent TSB.

cooper38

unclebill98 wrote: »

Your not right with that.

Banks have two options. Either negotiate the chq on the day presented or send it on collection. If its done on the day you get that rate, if its sent on collection you get the rate on the day it comes back to the bank.

So even if you shop around it can mean nothing cause they may not negotiate the chq on the day and can send it on collection. So 9/10 people will end up using there normal bank cause of the red tape associated with lodgement of very large f/x chq's.

There is no such thing as a daily rate. It changes every few seconds. If you use a bank in ireland to convert a foreign currency cheque you will receive less euro for your dollars than if you use someone like transfermate. Ive called around and tried it myself and would not use the banks again

unclebill98

cooper38 wrote: »

There is no such thing as a daily rate. It changes every few seconds. If you use a bank in ireland to convert a foreign currency cheque you will receive less euro for your dollars than if you use someone like transfermate. Ive called around and tried it myself and would not use the banks again

Bank BRANCH F/X exchanges do not change there rates every few seconds :rolleyes:

They set there margin in the morning to max profits for the day and only change them if there is a massive shift through the day.
Rate bookings only apply to chq's and not cash.

You can buy these rates only if the chq amount is large enough.

I'm not saying transfermate is not cheaper.