| Currency | Rate Last
Week | Rate This
Week | | EURO | 1.487 | 1.488 | | CY£ | 0.863 | 0.867 | | US$ | 2.056 | 2.03 | | CAN$ | 2.146 | 2.1450 | | AUS$ | 2.329 | 2.364 | | NZD | 2.578 | 2.633 | | CHF | 2.469 | 2.458 | | ZAR(Rand) | 14.158 | 14.320 | Charles's Thoughts: Like the weather in the UK the currency markets where equally as turbulent this week. Against the dollar Sterling hit a 26 year high this week, as fears continued about the sub prime mortgage issue in the States effecting the wider US economy. Today (Friday) the dollar pushed back to a 6 week high against sterling as adverse investors looked to sell high yielding currencies including the pound, favouring less risky assets. The Aus$ and NZ$ also suffered from these market jitters as the possibility of a global credit crunch looks like an increasing (but admittedly small) possibility. Against the Euro the pound got close to the psychologically important 1.5 level before it weakened again leaving it still at a relatively high level of 1.4850 (15.00 GMT)
Weaker that expected Nationwide housing figures and other 'soft' UK data out this week perhaps suggest the UK economy is at last starting to feel the pinch after five recent base rate rises. This added to further doubt that another rate hike will happen anytime soon and was another major factor in sterling's sell off. However financial markets are still pricing in one more rate increase to 6 percent by the end of the year. The BoE meets to set rates on Thursday next week, the expectation is no change from 5.75%. UK mortgage applications data next week could give further clues on the outlook for rates, I feel next week will see Sterling struggle to maintain it recent gains in light of the current downside pressures. 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: "Smart Currency are helpful & efficient, I have found that they have the best rates available. They are easy to deal with and plain talking." Kay & Karl Brown, Hartlepool 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 currency rate noted above. But note this is based on the inter bank rate so the actual cost will be slightly more. 
Charles Purdy
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