Smart Weekly Currency Note - 5th September 2008

Smart Currency Exchange - Weekly Currency Rates for Overseas Property Buyers

Weekly Currency Interbank Exchange Rates 5th September 2008

Currency Rate Last Week Rate This Week EURO 1.241 1.238 US$ 1.819 1.763 CAN$ 1.935 1.876 AUS$ 2.122 2.171 NZD 2.600 2.643 AED 6.689 6.479 CHF 2.007 1.968 ZAR(Rand) 14.037 14.049 Charles's Thoughts:  Chancellor Darling hardly inspired confidence at the start of the week describing the UK economy as being similar to the post war era of the late 1940's. Needles to say sterling began to lose value against most currencies. On Thursday, the Bank of England held UK interest rates. The BOE is still unsure what to do as it continues to worry about inflation while the economy falters. No sunshine on the horizon for sterling. The US$ continues to gain significantly against sterling. Next stop US$1.75/£1. The US has had the advantage of cutting interest rates early on the basis that inflation was under control. Most people new this wasn't "true" but it now gives the US monetary authorities an advantage over the UK and Euro land in that they can't/don't have to cut interest rates to help the US economy. The US$ is on the ascendancy in the short term. The € is under pressure as most of Euro lands economies are suffering from the €'s high value. It has lost ground against the US$ but has yet to lose ground against sterling [in fact it is hitting record highs]. The European Central Bank kept € rates on hold this week again citing the conflict between inflation and the economy. They did highlight that they thought the € was significantly overvalued. Where the bottom for sterling is against the Euro is hard to say but best not to assume we cannot go under €1.20/£1. Commodity backed currencies are suffering as the world economy stumbles and commodity prices fall. I suspect they will be under short term pressure. 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 currency 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 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 trouble!

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Smart Daily Currency Note - 4th September 2008

Smart Currency Exchange - Daily Currency Rates for Overseas Property Buyers

Free Daily Inter Bank Currency Exchange Rates 4th September 2008

Currency Rate EURO 1.225 US$ 1.780 CHF 1.963 CAN$ 1.882 AUS$ 2.124 Comments:  Sterling is still falling. Not surprising given the Chancellors lack of faith in the economy. Sterling continues to hit all time lows against the € and no one is sure where the bottom is. Also the US$ continues to gain strongly against sterling. The Bank of England meets today and is expected to keep UK interest rates on hold as they have to balance between rising inflation and a faltering economy. Not a pretty picture with sterling heading one way and that is down. Note:  All rates are mid market inter bank and indicative at the point of publication.  To get an initial estimate of the cost of a property simply DIVIDE the price of the property by the appropriate currency rate noted above.

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 valid at a moment in time. 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 recommend 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!

---

SCE/OGC

1 Hammersmith Grove
London, London
W6 0NB
GB


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