Smart Weekly Currency Note - 29th May 2009

Smart Currency Exchange - Weekly Currency Rates for Overseas Property Buyers

Weekly Currency Interbank Exchange Rates 29th May 2009

Currency Rate Last Week Rate This Week EURO 1.135 1.143 US$ 1.591 1.619 CAN$ 1.786 1.766 AUS$ 2.026 2.019 NZD 2.559 2.535 AED 5.842 5.938 CHF 1.725 1.726 ZAR(Rand) 13.195 12.885 Charles's Thoughts: Sterling’s promising rise against most currencies over the last month or so maintained until the closing moments of this week. Still managing to close in positive territory on Friday against the euro, sterling’s gains of approximately 15 percent against the USD since early March have given the markets a clear signal that risk appetite is back in some force and has directly leant itself to help sterling out of the mire. With no significant UK economic data released and the press perhaps still entirely engrossed in the expenses scandal, confidence and house-prices are seemingly on the up according to recent reports. Comments from the Bank of England warning of a potential false dawn due to the brightening outlook have perhaps been designed to limit sterling’s swift rise and limit volatility and avoid major disappointment for later in the year. Bad news will certainly continue to come from the UK economy but sterling’s ability to weather this recently has definitely encouraged measured optimism. The US$ and its fall against most major currencies over the past few months and this week in-particular has been an example of how the market is hinging on the risk-appetite/aversion phenomena. A marked improvement in US consumer confidence and month-on-month durable goods orders this week only encouraged investors to shun the US$ for higher-yield and riskier assets. However, this fall in value is a symptom of improved confidence and will perhaps bring a more realistic value, in-line with its Purchasing Power Parity value (a valuation of currency based on the comparative cost of goods overseas). Much of the Euro-zone economic data released this week, including a Europe-wide inflation report, was as-expected and so had little effect on the euro’s value on the markets. Recent large gains against the weakened US$ have helped flatter the euro, as large losses elsewhere, such as against sterling and the Australian dollar have left the euro in the middle ground but in a downward trajectory overall. Positive performances in the equity markets have perhaps allowed the euro to avoid or ignore much of the speculation that a tougher end to 2009 awaits. Commodity backed and/or high-yield currencies are too benefiting from the higher levels of risk appetite in the markets at present, the Australian and Canadian dollars maintain holding very strong level against most currencies. 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 Lyric Square | Hammersmith | London | W6 0NB | UK © 2005-2009 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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