Smart Weekly Currency Note - 12th December 2008

Smart Currency Exchange - Weekly Currency Rates for Overseas Property Buyers

Weekly Currency Interbank Exchange Rates 12th December 2008

Currency Rate Last Week Rate This Week EURO 1.153 1.115 US$ 1.460 1.488 CAN$ 1.903 1.849 AUS$ 2.304 2.254 NZD 2.794 2.734 AED 5.644 5.443 CHF 1.786 1.754 ZAR(Rand) 15.564 15.089 Charles's Thoughts:  Sterling suffered another slump against the euro and drew massive media attention for hitting record lows daily. The fall in value of over 20% through this year has and will continue to have a serious impact on sectors the UK economy with added pressure on everyone from major importers through to British ex-pats having their pensions transfers sent overseas. On the flip-side of this, UK exporters who may have expected to benefit from the ever-cheapening pound have only found that business on the whole has slowed down as the global economic down-turn gains pace. Poor economic data continued to weigh on sterling with falling industrial production and a further contraction in the housing market all contributing to the demise of sterling. The US$ flattered sterling this week as the pound rose by over 3% from Monday to Friday. Whether this should be classed as a rebound from the US$'s sudden resurgence starting about four months ago or that the consistently below-par US economic data is finally taking its toll is only adding to the anticipation of another reduction in US interest rates by the Federal Reserve who will meet next week. Should US interest rates be cut below the 1% mark the precedent will be set and the UK may well be expected to follow their lead and cut at their next opportunity in the new year. European market data has been rather indifferent throughout the week but due thanks to the obvious issues in the UK and America the euro made broad gains against sterling and the US$. Some of the advances from the euro are perhaps thanks to a less 'aggressive' approach from the European Central Bank (ECB) in reducing euro interest rates as well as comments this week from ECB board members suggesting that they are not guaranteeing further cuts in the early months of 2009. There was no significant movement against the high yield and/or commodity backed currencies for sterling this week. Interest rates in Canada were reduced earlier in the week with the growing pressures of the global downturn sited as the main reasons behind the decision. 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 Hammersmith Grove | Hammersmith | London | W6 0NB | UK © 2005-2008 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!

---

SCE/OGC

1 Lyric Square
London, London
W6 0NB
GB


If you no longer wish to receive communication from us:
Cancel

To update your contact information:
Update