Smart Weekly Currency Note - 19th June 2009

Smart Currency Exchange - Weekly Currency Rates for Overseas Property Buyers

Weekly Currency Interbank Exchange Rates 19th June 2009

Currency Rate Last Week Rate This Week EURO 1.174 1.180 US$ 1.650 1.645 CAN$ 1.842 1.865 AUS$ 2.031 2.039 NZD 2.573 2.555 AED 6.059 6.039 CHF 1.780 1.783 ZAR(Rand) 13.272 13.308 Charles's Thoughts: Sterling’s upward momentum stalled this week largely due to weaker than expected UK retail sale figures as well as comments from the Bank of England’s (BoE) meeting minutes from earlier this month suggesting quantitive easing and asset purchases were still part of their plans despite the recent upturn in confidence. The BoE has also been deliberately quick to try to put the recent surge from sterling and the improving economic data in perspective and have warned of new and persistent problems which may arise as a hangover of the rather epic down-turn of the last year. Better-than-expected inflation data and a rally in equity markets would certainly have helped sterling claw back its midweek losses and close the week within a cent of it’s highest value against the euro in over 6 months. With risk-appetite firmly back in the market sentiment worldwide the US$ has only managed to keep its head above water from its rather large losses against most currencies in the last 8 weeks. The rate of decline in the US economy has eased according to recent economic figures and has consequently helped improve confidence and boost the US equity markets. Perhaps the biggest threat to the strength of the US$ at present is the continuing discussions by major powers such as Russia, China, India and Brazil on finding a new or alternative reserve currency. The euro has retraced on some of its recent gains against the US$ since the start of June and is still in a downward trend against sterling. Despite no particularly negative or outstanding results in Eurozone market data the rate of contraction in the Eurozone economy has proven to be rather sharp since the start of 2009. Attention this week has fallen on the Eurozone banking system who are expected to face massive financial losses and prove in some terms the lagged reaction to the global economy that may keep the entire region under pressure whilst other parties eye the end of the crisis. High-yield and/or commodity backed currencies are still managing to maintain strong levels thanks to high demand in commodities and increased risk appetite. This is very dependent on China maintaining it huge infrastructure expenditure which it is very likely to do. 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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