Smart Weekly Currency Note - 5th June 2009

Smart Currency Exchange - Weekly Currency Rates for Overseas Property Buyers

Weekly Currency Interbank Exchange Rates 5th June 2009

Currency Rate Last Week Rate This Week EURO 1.143 1.144 US$ 1.619 1.601 CAN$ 1.766 1.783 AUS$ 2.019 1.997 NZD 2.535 2.533 AED 5.938 5.876 CHF 1.726 1.737 ZAR(Rand) 12.885 12.866 Charles's Thoughts: Sterling’s positive run on most major currencies was curtailed in the middle of this week as risk-aversion returned and the safe-haven USD regained lost ground from last month. The mounting pressure on Gordon Brown to resign as PM, having navigated the UK economy this far through the credit crisis, has reflected poorly on sterling as any major upheaval in domestic politics could spell a reworking of current plans and delay action on matters yet to be resolved. UK Economic data over the week, ranging from consumer credit reports, mortgage approvals and inflation data, was no worse than expected. The Bank of England also kept interest rates on hold at 0.5% and stated that there would be no immediate expansion of the quantitive easing measures – at least for the time being. By close on Friday, sterling was roughly 2 cents down from its opening price on Monday against the US$ but 7 cents down from its peak price mid-week. Against the euro sterling managed to rally back from its midweek losses and close trading on Friday practically unchanged from Monday’s levels. The US$ bounced back from its recent fall against almost all major currencies this week as risk aversion and the demand for safe-haven assets returned to the markets. There was also a major boost for the US economy on Friday as unemployment data showed a much better result for the month of May than was widely anticipated. The US$’s return to strength is perhaps a loss of confidence in the ‘bear run’ of investor confidence and a quick sell off of the high-yield assets. There will be great interest over the coming weeks as to which trajectory the US$ will take, as a continuation of risk-appetite may give a major clue to the worst of the crisis being over. There were no major surprises in European market data this week nor from the European Central Bank’s decision to keep their interest rates on hold in their meeting on Thursday. Though there was a further revision down of GDP estimates for late 2009, the euro has been broadly resilient to the suggestions and speculation that conditions will continue to deteriorate in Europe as Britain and the US begin to see the vague signs of recovery. Eurozone inflation figures and estimates continue to weigh on the euro but with little suggestion that monetary policy will change it may be some time before we see much long-term upside for the single currency. No major news for high-yield and/or commodity backed currencies. Continued demand for commodities is still supporting the strength of the Australian and Canadian dollars. 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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