| Currency | Rate Last
Week | Rate This
Week | | EURO | 1.309 | 1.303 | | US$ | 2.017 | 2.035 | | CAN$ | 1.979 | 2.013 | | AUS$ | 2.166 | 2.166 | | NZD | 2.541 | 2.485 | | AED | 7.410 | 7.445 | | CHF | 2.054 | 2.048 | | ZAR(Rand) | 16.247 | 16.082 | Charles's Thoughts: Times continue to be interesting given the problems in the US and gold and gas reaching record prices. The UK budget was held this week. Nothing much happened as the Chancellor has some fairly simple and fundamental problems. The UK economy is not growing as quickly as hoped/wished for and tax revenues are less than out goings. So the Chancellor was unable to give much away or take much more from our pockets. In the current climate sterling itself is a side show and continues to gain against the US$ and stay close to all time lows against the Euro. The US is in recession given every possible measure that could be used. This week the Fed made huge amounts of funds available as the credit market wasn't working i.e. banks are [still] not lending to each other. The Fed is expected to cut US interest rates by 0.75% this coming week. Can we expect more bad news from the US? I've no doubt about it. If a major US financial institution does go bust then the US$ will loss value hand over fist. Not encouraging times. The Euro continues to be viewed as a safe haven currency close to highs against sterling and hitting ever increasing highs against the US$. In fact Euro land experienced industrial growth in January ahead of expectations. However, the European Central Bank has started to make a lot of noise as to how large exchange movements are bad for businesses. I think a good interpretation of this would be that the strength of the euro is beginning to hurt Euro land business. But the ECB is unlikely to reduce interest rates soon and given US$ interest rates are expected to be reduced I can't see any reversal any time soon in the Euros strength. A mixed week for currencies such as the Canadian $ and Australian $. A bit of weakness for the Australian $ in the middle of the week which has been recovered by the end of the week. The Canadian $ given its proximity to the US is sliding as there are fears over the Canadian economy. 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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