Currency | Rate Last
Week | Rate This
Week | EURO | 1.491 | 1.473 | CY£ | 0.858 | 0.845 | US$ | 1.964 | 1.943 | CAN$ | 2.277 | 2.288 | AUS$ | 2.480 | 2.485 | NZD | 2.778 | 2.827 | CHF | 2.420 | 2.359 | ZAR(Rand) | 13.881 | 14.255 |
Charles's Thoughts: Sterling was having a steady week until Friday when it suddenly lost ground against the Euro and the US$. No clear cut reason as to why this happened. The main story last week was the fall out in the equity markets and the rise of the Japanese Yen against all comers. All is not lost for sterling as interest rates are still expected to be increased by at least one further 0.25% later this year. The US$ continues to move in a narrow range between 1.94 and 1.98. At the moment it is closer to 1.94 [mainly on the back of sterling weakness]. Inflation is still a concern. The US economy is a concern [for the whole world]. And as for the budget and the balance of payments deficits they seem to have no bounds. However, it may be perverse but is the only way up as the US digs itself out of this hole! The Euro gained another cent. That makes about a 5 cent gain in less than a month. We are at levels which make more sense. I still see the Euro having the upper hand but less upside that it had. But we are still in the top quartile of exchange rates for the last two years if we exclude December and January. The carried trades became a major concern as the Yen gained significant ground against all currencies. The carried trade relied on borrowing in low interest rate currencies and using these funds to buy high yielding currencies. Its been a one way bet for the last two years. Suddenly everyone is heading for the exit at once. The NZD and rand lost ground. Why is Currency Management So Important? Emotion is a factor that has to be managed when buying or selling currency and that is best achieved by setting a target rate and as and when it is hit you do the exchange. The worse feeling in the world is to find extra funds when you know that if you had stuck to you're target rate you would have saved £'000s. Smart Client Testimonial: "Told in Cyprus about using Smart and found it to be an excellent service. Found although a business a caring business." W. Shields, Scotland 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. But note this is based on the inter bank rate so the actual cost will be slightly more.
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