| Currency | Rate Last
Week | Rate This
Week | | EURO | 1.488 | 1.487 | | CY£ | 0.864 | 0.863 | | US$ | 2.030 | 2.035 | | CAN$ | 2.145 | 2.151 | | AUS$ | 2.364 | 2.377 | | NZD | 2.633 | 2.653 | | CHF | 2.458 | 2.469 | | ZAR(Rand) | 14.320 | 14.388 | Charles's Thoughts: The Bank of England held UK interest rates at this weeks meeting. This was no surprise given the BOE increased rates at their last meeting, that we have had significant volatility in the equity markets and the major floods in certain parts of the UK in the last month or so. Sterling is still holding its own and the market expects that we will see at least one further increase in UK interest rates by Christmas. The US$ has enjoyed [if that is the right word] a period of stability holding its own around the 2.03 level. The problems with the sub prime loans are beginning to reach far and wide. Last week the equity markets were rattled. This week the private equity buy outs are finding the credit markets very difficult. Loans are either very expensive or impossible to put in place. Strangely this has been of benefit to the US$ as it has meant a flight to safety. Not quite sure why the US$ is included but some people seem to be able to "gloss over" the US balance of payment and budget deficits. I still believe that the US$ is going to be under pressure for a while yet. The European Central Bank kept Euro land interest rates on hold this week but come September the markets expect interest rates to be raised by at least 0.25%. This will support the Euro short term. However the Euro is still very strong against the US$ which is hurting Euro land exporters and as such we can expect pressure on the ECB to moderate their increases in interest rates. In fact France has been very vocal in wanting interest rates to be reduced. The commodity based currencies such as the Canadian $, South African Rand and Australian $ and the high interest rate currencies such as the new Zealand $ have been in the firing line for the last couple of weeks given the instability in equity and debt markets. Until a bit of stability returns further weakness is expected. 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 your friendly, speedy and efficient service, no fuss and the job done, your excellent service gave us one less thing to worry about. Thank you again." Mr & Mrs S. Lillick (Eastbourne) 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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