Smart Weekly Currency Note - 21st August 2009

Smart Currency Exchange - Weekly Currency Rates

Weekly Currency Interbank Exchange Rates 21st August 2009

Currency Rate Last Week Rate This Week EURO 1.163 1.154 US$ 1.653 1.650 CAN$ 1.810 1.784 AUS$ 1.987 1.978 NZD 2.440 2.420 AED 6.069 6.061 CHF 1.772 1.751 ZAR(Rand) 13.374 12.876   Charles's Thoughts: With few significant economic data releases during the week and a tentative air in the markets at present sterling merely continued in its downward trajectory, making marginal losses against most major currencies. However, a slight increase in risk-appetite and business confidence globally led to gains against the US$ as investors fled their safe-haven assets. The main focus of the economic week for the UK was this month’s Bank of England’s meeting minutes released on Wednesday. In the report we learnt that Mervin King (the Bank’s governor) and two of the other eight members’ wishes to immediately expand the ‘asset purchase scheme’ and inject further liquidity into the UK economy. This news instantly devalued sterling on the markets and added speculation that the governor’s plans may well be supported by additional members next month as all have supported the notion. Next week will see second quarter UK GDP figures, another major indicator for the current health of the UK economy. The US$ made broad losses against almost all major currencies this week as global risk appetite grew and investors sold-off their low-yield and low risk assets. With many of the nations hit by the ‘credit crunch’ in the last two years now seeing faintly positive, if inconsistent, productivity data the anticipation of the end of the global recession has generated enough confidence to see a sharp rise in commodity indices and a brightened outlook for business. There was very little significant eurozone economic data this week but the euro, still buoyed by the suggestions in the previous week that France and Germany were essentially leaving recession, enjoyed a positive run against most currencies and neared a one month high against sterling on Friday. A positive trend in the results of the European PMI index since February, which is used as a strong indicator for future business activity, has been a major plus for the euro in recent months. If euro inflation figures due next week are as positive the euro may well improve on this weeks good performance. There was no major news on the high-yield and/or commodity backed currencies this week. 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 (+44 0207 898 0541) 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 (if calling from outside the UK, please use +44 0207 898 0541) 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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