| Currency | Rate Last
Week | Rate This
Week | | EURO | 1.450 | 1.434 | | CY£ | 0.843 | 0.830 | | US$ | 2.008 | 2.020 | | CAN$ | 2.067 | 2.017 | | AUS$ | 2.387 | 2.334 | | NZD | 2.816 | 2.719 | | CHF | 2.392 | 2.370 | | ZAR(Rand) | 14.375 | 14.138 | Charles's Thoughts: A very difficult week for sterling. The Northern Rock saga dragged on and even when the government stepped in to secure the savers funds, the U-turn by the Bank of England in pumping additional liquidity into the market led to further pressure on sterling. Some semblance of stability seems to have returned by the end of the week. I still think that sterling is over sold but any bad news will have a greater affect than good news short term. Still looks like a good time to repatriate funds to the UK The US$ has hovered around US$2. The Fed made a pre emptive strike by cutting interest rates by 0.50% which was higher than expected and has given some comfort to the market. However the US$ is going to be under pressure for the foreseeable future. There are significant economic problems and a recession is possible. So no respite for the US$ short or medium term. The Euro continues to be in the ascendancy continuing to hit all time highs against the US$ and hitting levels not seen for 18 month against sterling. The Euro has gained 5 cents against sterling in the space of two week. A very significant move and I suspect an excessive response to the mishandling of the liquidity crisis by both the BOE and the government. We should also note that market sentiment is that the European Central Bank will not increase interest rates as indicated. We wait and see. Certainly a good time to repatriate funds to the UK relative to two weeks ago. Sterling continues to lose ground against the Canadian $, the New Zealand dollar and the Australian dollar. Not surprising given the problems noted above but I suspect again an over reaction. So it seems like a good time to repatriate funds. 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: "It's not often that I get to write these e-mails but I wish to thank you and your colleagues for the recent service you provided in my currency transaction. I only wish my bank could be half as efficient!!" Kind regards Chris Parker 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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