Pound v Dollar

#1 Apr 6th, 2011, 01:49
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#1
TITLE SHOULD READ POUND V DOLLAR

----------

Hello,

I have just bought a Cash Passport (PrePaid Mastercard).

The lady advised me to have it in Dollars and not Pounds; I agreed.

When coming home, I realised that $1800 will give me less rupees than 1200 would.

What do you think I should do?

Why do people recommend dollars and not the pound for India?

Michael


Mod note: title changed
Last edited by mikey89; Apr 6th, 2011 at 02:10.. Reason: Wrong title on post
#2 Apr 6th, 2011, 02:21
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#2
There's no difference. There is the exchange rate of the rupee vs. the pound, and there is the exchange rate of the rupee vs. the dollar (the rate of pounds to dollars doesn't matter).

$1800 = 1116 = Rs79865
$1934 = 1200 = Rs85853


Difference in dollars ($134), then converted:

$134 = 83 = Rs5945

Notice that the difference in pounds (1200-1116) = 84 and that the difference in rupees (85853-79856) = 5997, and that these numbers almost exactly match the conversion rates of $134.

Your flaw is that $1800 and 1200 are not equal. It takes $1934 to buy 1200.

At the end of the day, it's not the conversion rate that matters -- you have a foreign currency (doesn't matter which) and all your purchases will be in rupees. What matters to the traveler are the fees and commissions (from your bank or credit card company, or from a currency exchange in India). You can't spend dollars or pounds in India (except in some exceptional places -- high-end hotels, duty free, etc.)
#3 Apr 6th, 2011, 03:19
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#3
Ok.

Still confused slightly so I'll make this clearer.

My 1200 bought be $1800 Dollars.

I have two choices....

1) Keep the $1800 Dollars
2) Change the $1800 back to the Original 1200 and take that.

What would work out best?
#4 Apr 6th, 2011, 03:42
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#4
Quote:
Originally Posted by mikey89 View Post Ok.

Still confused slightly so I'll make this clearer.

My 1200 bought be $1800 Dollars.

I have two choices....

1) Keep the $1800 Dollars
2) Change the $1800 back to the Original 1200 and take that.

What would work out best?
Q.What will you lose if in exchange rate conversion when you change your $ to .
Q. Is it worth it.
MConTour

Faster, faster, until the thrill of speed overcomes the fear of death... (Hunter S. Thompson)
#5 Apr 6th, 2011, 03:48
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#5
1. I will lose nothing for exchanging back as they buy back commission free
2. Its about a 70 difference (5000 Rupees)
#6 Apr 6th, 2011, 03:51
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#6
If you can get your original 1200 GBP back, I would recommend that you consider it. I looked at a conversion site and found:

1200 GBP will give you 86,729.7 INR
1800 USD will give you 80,637.3 INR

or a loss of 6092.4 INR (83.8 GBP)

Indian banks and ATMs have no trouble converting GBP into INR

If you have to pay a conversion fee for USD to GBP, it might not be worth it.

Sorry.... our USD is doing very badly right now.


Journey far.....
Walk in Peace.
#7 Apr 6th, 2011, 03:55
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#7
Thanks. There are no other perks about taking the dollar to India is there? Fees at ATMs etc? I'm going to go back and use Pounds I think...
#8 Apr 6th, 2011, 03:59
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#8
Quote:
Originally Posted by mikey89 View Post TITLE SHOULD READ POUND V DOLLAR

----------

Hello,

I have just bought a Cash Passport (PrePaid Mastercard).

The lady advised me to have it in Dollars and not Pounds; I agreed.

When coming home, I realised that $1800 will give me less rupees than 1200 would.
Prepaid Credit Cards are the worst bar none when it comes to exchange rates and 3-card monte.

They had a builtin 134$ margin.
#9 Apr 6th, 2011, 04:04
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I'm not sure why people told me to get one.....it seems all bad to me. Going back to the subject if I put 1200 on it, I know theres 1200 on it. I can't cheated with Rates. I'm taking it back to Thomas Cook tomorrow.
#10 Apr 6th, 2011, 04:05
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#10
look at it this way
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#11 Apr 6th, 2011, 04:13
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#11
So basically I've lost out on 100.

I will go back, change the $1800 back to the original 1200 (as that what my rate was, my 1200 bought $1800) and get a few more INR
#12 Apr 6th, 2011, 04:15
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#12
Quote:
Originally Posted by mikey89 View Post I'm not sure why people told me to get one.....it seems all bad to me. Going back to the subject if I put 1200 on it, I know theres 1200 on it. I can't cheated with Rates. I'm taking it back to Thomas Cook tomorrow.
I think you will lose out on the exchange rate. There may be no commission but there will be a buying and selling rate if I am not wrong.

Post back and tell us the outcome.

A prepaid card is good in the fact that if you lose it or it gets stolen it will not affect your normal bank account. This is why most people who use them, get them. I normally take cash and use my bank card, it saves hassle.
#13 Apr 6th, 2011, 04:22
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#13
Didn't think of it like that. I'm puzzled why I did it in the first place.

The lady advised me Dollars would be best. Best for who is the question I want answering.....
#14 Apr 6th, 2011, 04:47
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#14
Also.....Does the Dollar change better in India? It might seem like I'm losing out here but will I loose out in India?
#15 Apr 6th, 2011, 05:00
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#15
Quote:
Originally Posted by mikey89 View Post Also.....Does the Dollar change better in India? It might seem like I'm losing out here but will I loose out in India?
look here

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