Smart Weekly Currency Note -31st October 2008

Smart Currency Exchange - Weekly Currency Rates for Overseas Property Buyers

Weekly Currency Interbank Exchange Rates 31st October 2008

Currency Rate Last Week Rate This Week EURO 1.260 1.271 US$ 1.592 1.618 CAN$ 2.035 1.956 AUS$ 2.563 2.449 NZD 2.863 2.784 AED 5.851 5.945 CHF 1.859 1.879 ZAR(Rand) 17.960 15.810 Charles's Thoughts:  Sterling rose steadily against the euro throughout a relatively quiet week for market data. Closing the week only marginally up against the US$ despite another period of high price volatility the sterling to US$ rate moved in a huge range over the last five days of around 8%. The reductions in LIBOR (inter-bank lending rates), which were significantly reduced over previous weeks, were intended to bring more stability to the markets and ease conditions for the money lenders. However, the aftermath of the last few months in the credit crisis are leaving investors and business confidence still very much at a low. Next week's decision on UK interest rates from the Bank of England will provide a shock only if rates are not cut, with many expecting a further half a percent off to follow last month's emergency cut of the same value. The US$ fell midweek against both sterling and the euro following the Federal Reserve's meeting on Wednesday where they cut US interest rates by half a percent to just 1%. Still benefiting from being viewed again as a safe-haven asset, the US$ along with the Japanese yen have maintained strength, more for the lack of safe bets elsewhere. In fact, with consumer confidence at its lowest levels in America for more than 40 years and weaker than expected GDP data released this week, the dollar did not perhaps weaken as much as it would or should have in 'standard' market conditions. The European Central Bank may also be in line for cutting interest rates next week and despite no promises being given from Jean-Claude Trichet, the fact that inflation has been measured again to be returning to more manageable levels will have left the door open for a move from the ECB sure to ease conditions for business growth in a stalling economy. The euro's value against sterling is still holding firm whilst having lost well over 20% of its value against the US$ since July. There was no major news regarding the high yield and/or commodity backed currencies this week however they did regain some 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: "Thank you for making our transactions go so smoothly. As promised, our account was opened within hours. Your traders were pleasant and efficient, and each transaction was very much at the exchange rate I expected...ie not a million miles away from the inter-bank rates and certainly much better than my high street bank could quote. All in all, an easy experience and we will have absolutely no hesitation in recommending your services to any of our friends buying property abroad." Ian Pritchard 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 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 trouble!

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