Smart Weekly Currency Note - 12th June 2009

Smart Currency Exchange - Weekly Currency Rates for Overseas Property Buyers

Weekly Currency Interbank Exchange Rates 12th June 2009

Currency Rate Last Week Rate This Week EURO 1.144 1.174 US$ 1.601 1.650 CAN$ 1.783 1.842 AUS$ 1.997 2.031 NZD 2.533 2.573 AED 5.876 6.059 CHF 1.737 1.780 ZAR(Rand) 12.866 13.272 Charles's Thoughts: With very little significant economic data and a quieter week for the under-fire Gordon Brown, sterling made the most of its chance to prove its recent trend was perhaps not the false dawn some had expected. Much of the focus for sterling has centred around the speculation that the decline in the UK economy is nearing or perhaps reached its end. Though several sources including the Bank of England and Chancellor Darling have warned against assuming that the recession is nearing its end, confidence surveys and economic data have reflected that conditions are still poor but not deteriorating as they had been in previous months. UK industrial production has increased marginally and the NIESR estimate of UK growth based on GDP showed a turnaround as of April with the improvements continuing through May. Further, steady improvements against the euro have lifted spirits, given the near-parity disasters at the start of the year and sterling has regained ground against the US$ and finished the week close to last week highs. Euro economic data was also sparse this week and so the euro did not make any particularly large gains or losses in the week, though there were disappointing figures regarding money supply and German industrial production. In spite of losses made against sterling during the week the euro managed to hold a relatively steady price against the US$. There has been some speculation as to whether the European Central Bank will look to increase interest rates but given that many expect Europe to be lagging behind in the cycle suggests that there is still a possibility that rates will be cut even further. US equity market rises have helped encourage more risk taking on the markets and so as we have seen in recent months, the US$ has suffered as a consequence of this. The improvements in US equity markets have been as much a result of the increasing optimism in global markets and so were unlikely to simply flatter the US$. US economic data including trade balance figures and the 6-weekly ‘Beige book’ published by the Federal Reserve caused little surprise and so made for a rather uneventful week for the US$. There is little significant data for due out from the US next week which suggests that the focus will remain on sterling’s performance in the new risk-appetite lead market. The commodity backed currencies and “high interest rate” currencies had a good week overall as risk appetite was on the increase but sterling did manage to gain ground against most if not all of them. 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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