| Currency | Rate Last
Week | Rate This
Week | | EURO | 1.337 | 1.328 | | US$ | 1.963 | 1.967 | | CAN$ | 1.959 | 1.994 | | AUS$ | 2.163 | 2.137 | | NZD | 2.485 | 2.449 | | AED | 7.208 | 7.227 | | CHF | 2.142 | 2.137 | | ZAR(Rand) | 15.030 | 15.258 | Charles's Thoughts: Sterling lost ground following our beloved governments decision to nationalise Northern Rock. Not a great outcome but it will hopefully draw a line under a very damaging event to the UK's reputation. Sterling has lost significantly against most if not all currencies since the problems at Northern Rock were made public. The Bank of England still has the problem of rising costs and a faltering UK economy. The minutes of the BOE's last meeting highlighted this conflict and as a result, the market has tempered its expectations as to the speed and extent of UK interest rate reductions. I still believe sterling is oversold [i.e. sterling should strengthen over the medium term but the reality could be a lot different]. Also beware of another major shock like Northern Rock as we would see sterling slide rapidly. The US$ has gained and then lost ground against sterling over the last week. Difficult to think of anything new to say about the US. Huge problems with a faltering economy and a financial sector full of uncertainty. Not dissimilar to the UK. I suspect the news flow will get [a lot] worse before it gets better. Further interest rate cuts are a distinct possibility. Euro land is an interesting mix given. Germany is still performing whereas those countries such as Ireland where there has been a huge property boom are suffering. Allied Irish Bank was having to "look after" Euro 700 million of loans to property developers who were suffering cash flow problems. I suspect such stories will continue. The European Central Bank is likely to hold interest rates steady for the time being. Australia seems to still be booming which gives further support to the Australian $. Its only the South African rand of the commodity backed currencies with its distinct political problems that is losing ground against sterling. Why is Currency Management So Important? Using a bank could cost you £3-4,000 per £100,000 transferred. Buying at the "wrong" time could cost you many £'000's more as rates can move as much as 3% in a very short period of time. Then add in transfer costs that the banks charge for sending and receiving funds and you could be looking at additional costs of £10,000 per £100,000 transferred. By developing a currency strategy and by working with a specialist currency broker these losses could be minimised if not eliminated. Smart Client Testimonial: "Recent transaction was completed very efficiently. The process was well explained, all questions answered with confidence. The process was very simple to follow with excellent feedback throughout the process. Plus a great rate of exchange was provided. I will definitely use the service again" John Derek Thompson 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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