Fishbone
Yes that may be correct however the hedges are recorded in the financials using the spot rate only. They do not take into account forward rates and interest rate differentials.
It is possible that the hedges are showing a gain using the spot rate but cannot be closed out due to a lag in the forward rate.
the AUD at 30 June 09 was 80.8. We are now at 84.4. NTA now would be about 3-4c better off than 2 months ago (30 June) using the AUD spot rate as the variable only.
With interest rates tipped to start rising very soon, the AUD may very well follow suit and then this whole hedges fiasco can be closed off once and for all!!
Cheers
aud now .8424, page-8
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