Smarts Weekly Currency Note - 29th February 2008

Smart Currency Exchange - Weekly Currency Rates for Overseas Property Buyers

Weekly Currency Interbank Exchange Rates 29th February 2008

Currency Rate Last Week Rate This Week EURO 1.328 1.307 US$ 1.967 1.985 CAN$ 1.994 1.941 AUS$ 2.137 2.112 NZD 2.449 2.469 AED 7.227 7.292 CHF 2.137 2.074 ZAR(Rand) 15.258 15.344 Charles's Thoughts:  UK economic news continues to be poor including UK consumer confidence, slowing house price inflation and fourth quarter growth that looked over reliant on government expenditure.. However, most of the main "stories" came from elsewhere and because of this sterling's fate was a one of contrast gaining against some currencies and losing against others. The Bank of England meets next week and it will be interesting to see if they reduce UK interest rates. Clearly the UK economy is suffering and the credit crunch is still causing significant difficulties to the financial arena. But inflation continues to be a major problem and therefore UK interest rate cuts may not happen as quickly as expected or hoped for. The US$ lost ground against sterling and most other currencies on the back of fears of US stagflation. This is when inflation is high but the economy is performing poorly or may even be in recession. The Fed has cut US interest rates twice this year and a further cut is expected in March. We could be heading back to US interest rates of 2%. However inflation is on the increase as we see oil over US$100/barrel and a lot of food commodities, such as wheat, experiencing very rapid increases in selling price. Such increases are inflationary. As a result the US$ has been suffering hitting all time lows against the Euro. The Euro has benefited from the problems of the US$ and from better than expected economic news especially in Germany. German business confidence was better than expected and we also saw German unemployment fall. However it is not all good news in Euro land with French consumer confidence falling but the overall feeling from the market is that Euro land interest rates will be held for a while. The European Central Bank meets this coming week. Commodity backed currencies such as the Australian and Canadian $ seemed to benefit from the weakness of the US$ as, noted above, commodity prices that seem to keep on going up and up. 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 Smart Resources Currency Strategy Worksheet Need help creating a Currency Strategy? Download our Currency Strategy Worksheet: http://www.smartcurrencyexchange.com/downloads/CurrencyStrategyWorksheet.pdf Currency Report Have your read our 10-page Currency Report that outlines the top 3 mistakes that overseas buyers make when exchanging and transferring their money overseas? Get the report here: http://www.SmartCurrencyExchange.com/downloads/ThreeMistakes.pdf Currency Quotation Are you interested in a currency rate for Euros, US$'s, CYP, NZD, or any other currency, please fill out our Smart quotation form at: http://www.SmartCurrencyExchange.com/smartquotation.htm Smart Currency Exchange Limited

email: Charles@SmartCurrencyExchange.com free phone: 0808 163 0102 web: http://www.SmartCurrencyExchange.com

Smart Currency Exchange | 1 Hammersmith Grove | Hammersmith | London | W6 0NB | UK © 2005-2008 Copyright  Smart Currency Exchange Ltd THIS PUBLICATION DOES NOT CONSTITUTE ADVICE WITHIN THE TERMS OF THE FINANCIAL SERVICES ACT (OR ANY SUBSEQUENT REVISIONS, ADDITIONS, OR AMENDMENTS). Disclaimer Exchange rates can move very quickly. The above rates are the interbank rates and valid at a moment in time. The interbank rate is the rate at which the banks deal with each other in the foreign exchange markets. Suggestions should not be taken as advice or fact. The market does what it wants to do.  We have no crystal ball and as ever we suggest that if an exchange rate works for your budget then don't try and wait for an even better exchange rate, as Murphy's Law says the rate will go against you and cause you maximum pain!

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