Currency | Rate Last
Week | Rate This
Week | EURO | 1.476 | 1.474 | CY£ | 0.854 | 0.853 | US$ | 1.984 | 1.982 | CAN$ | 2.144 | 2.104 | AUS$ | 2.423 | 2.383 | NZD | 2.730 | 2.665 | CHF | 2.437 | 2.438 | ZAR(Rand) | 14.090 | 14.052 |
Charles's Thoughts: An unexciting week for sterling. No major UK economic data to change sentiment unduly. A further increase in UK interest rates of 0.25% is considered a possibility for July and will lend support to sterling. The US$ had a steady week. Economic data was mixed but the hope is that the first quarter marked a bottom for the US economy and that we are seeing the first green shoots of a recovery. However I suspect the US economy is very susceptible to a shock such as a rapid increase in the oil price. Therefore no reason to think we are heading to 1.90 any time soon. Business confidence in Euro land is at the highest level for six years. Inflation is steady at about 2%. Interest rates are expected to be increased in June by 0.25%. Even though there is some disquiet over the strong Euro in the less efficient industrial nations I don't expect any short term action to be taken to undermine it. The Canadian $ continues to strengthen [exceptionally strong fundamentals] having gained over 20 cents in the last two/three months. The Australian $ has also benefited from strong fundamentals and the carried trade [funds are borrowed in low interest rate currencies e.g. the Japanese yen, and invested in the high yield currencies such as the Australian $]. The New Zealand dollar also benefited from the carried trade but business confidence has suffered and we wonder if the economy is on borrowed time. Why is Currency Management So Important? Exchange rates never do what you want them to do. The rate is moving in your direction, all economic information seems to indicate that this will continue for the foreseeable future but suddenly (and instantaneously) the market reverses on you. All you see flash before your eyes are £ signs. This is why it is vital to set a budget/target exchange rate which is realistic and grab it when it is available. The rate may continue in your direction but experience has taught me that although annoying for this to happen it is a lot less painful than an actual LOSS. Smart Client Testimonial: "Thank you for your help in depositing the euros in the French bank. Your advice and service was excellent and we will certainly make our future transactions through your Company. Having never made a transaction such as this we were a little nervous by not using a conventional bank, however, you gave us a competitive rate which on the amount transferred was quite a saving on the High Street Bank. Thank you." DR& M Jenkins, Bridgend If you haven't opened a Smart account yet, call me on freephone 0808 163 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. 
Charles Purdy
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