The currencies to own in particular are the Canadian, Singapore, Aussie or New Zealand dollars, and any of the Nordic trio – the Norwegian and Danish krone and the Swedish krone. The easiest way to accomplish this is through my buddies at Everbank. They offer certificates of deposit denominated in a variety of currencies, as well as CD baskets comprised of various currencies.
I would split my cash between a six-month Viking Basket (Norway, Denmark and Sweden) and a six-month Ultra Resource Basket CD (Aussie, New Zealand, Hong Kong, Singapore, Canada and Norway). You’re doubling up on your exposure to Norway, but given that is it the world’s strongest and best-managed currency, I don’t see the added exposure as a problem.
You’re going to pick up some yield on these CDs – 0.21% annualized on the Viking Basket and 0.64% on the Ultra Resource Basket. The bigger gains will come from the rising value of those currencies as the U.S. dollar struggles later this year.
USD Index From 1973 to date
