May 7, 2006

• <10%>

  When you plan to visit Japan in about two month time, the Yen goes up to something like Y111/US$.

  Half a year ago it was still Y120/US$. This means a 10% appreciation of Yen or a 10% reduction in my purchasing power in Japan.

  Given my girlfriend’s purchase in Japan will be fixed in Japanese Yen, in order to compensate her 10% loss, in total I will lose 20% of my purchasing power.

  F.U.C.K.

  Fortunately and unfortunately, I did some pesudo-hedging when the Yen was 117 or 118. At the cost of interest income, I hedges around 10% of my planned budget.

  What a 10%.

  • 9:53 pm
  • 3 Comments