Currency | Rate Last
Week | Rate This
Week | EURO | 1.487 | 1.476 | CY£ | 0.855 | 0.848 | US$ | 1.913 | 1.889 | CAN$ | 2.164 | 2.156 | AUS$ | 2.492 | 2.459 | NZD | 2.873 | 2.840 | CHF | 2.369 | 2.369 | ZAR(Rand) | 13.832 | 13.588 |
Charles's Thoughts: Sterling had a baddish week. Strange that a 0.25% increase in UK interest rates has resulted in a 2 cent loss against the Euro and the US$. Just shows how rumours affect the rate. The belief was that inflation was higher than planned and therefore interest rates would continue to be increased on a regular basis. However the Bank of England believes inflation is under control and is therefore unlikely to increase interest rates short term. The US$ is still suffering. Great uncertainty about the economy leading to difficulty in assessing future interest rate movements have undermined it. Also China is considering diversifying its reserves out of US$'s. Given this we may well see the exchange rate push back up to 1.90 inter bank. The Euro has benefited from uncertainty about sterling and improving business confidence in Germany and the need to raise interest rates. 0.25% increase in the Euro rate is expected in December. Sterling has significant downside risk as a lot of the year was spent closer to 1.44 rather than 1.49 inter bank. The rand continues to strengthen on the back of the increasing gold price. The Australian dollar is pushing hard against 2.45. The Canadian dollar is beginning to look susceptible given its dependence on the US economy but its commodity base should mean that any weakening is not going to be quick. Why is Currency Management So Important? Never assume that the market is working on perfect information and that exchange rates only move one way. Sterling spent a month hitting highs for the year of 1.49 plus inter bank against the Euro. Within a week its lost 2 cents. If you had a requirement to buy Euros 100,000 and had waited to now, you would have lost £1000. Not great! Smart Client Testimonial: "Very good service. Trustworthy, helpful friendly staff. Give good personal service. Best currency service I've ever used and would be happy to recommend to friends and family." V. Storey, Tyne on Wear If you haven't opened a Smart account yet, call me on freephone 0808 153 0102 or fill out our online Account Form at: http://www.smartcurrencyexchange.com/application.htm How much will a Property Cost? To estimate the cost of a property simply DIVIDE the price of the property by the appropriate currency rate noted above.
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