Smart Weekly Currency Note - 19th December 2008

Smart Currency Exchange - Weekly Currency Rates for Overseas Property Buyers

Weekly Currency Interbank Exchange Rates 19th December 2008

Currency Rate Last Week Rate This Week EURO 1.115 1.077 US$ 1.488 1.498 CAN$ 1.849 1.825 AUS$ 2.254 2.182 NZD 2.734 2.595 AED 5.443 5.499 CHF 1.754 1.661 ZAR(Rand) 15.089 14.601 Charles's Thoughts:  The downward trend for sterling has continued. More record lows were recorded against the euro and the dismal outlook for business growth, falling house prices and rising unemployment has only compounded matters. Exchange bureaus are now officially offering less than €1/£1 and the market rates are only a few cents away from parity. Consumer confidence has been severely dented according to the Bank of England's minutes, which were released this week and the UK's outlook is increasingly negative. Better-than-expected UK retail sales data both year-on-year and month-on-month did nothing much to help. Still no sign of any upside for Sterling. The Federal Reserve in America surprised the markets worldwide by cutting interest rates down to between 0% to 0.25%. The FED's accompanying statement to the decision which suggested that the rates will be kept at these levels for some time had the immediate effect of weakening the US$ across the board. However, much of the lost ground against sterling was recovered throughout the rest of the week as prices moved back under the $1.50/£1 mark. The future strength of the US$ still hinges on whether it maintains its status as a safe-haven currency in the face of weak market data and the volatile price of oil. Risk-averse investors will be hard pushed to leave their funds in a currency where there is almost a tradition of the government printing more and more money as they seem to lose their grip on the economy. Mixed Eurozone data and the continuing speculation that the European Central Bank will not slash interest rates in the same manor as the UK and US saw the euro make substantial gains against the US$ and sterling. The outlook for 2009 remains gloomy for Europe and according to some analysts the delay in cutting interest rates could prove to have a prolonging effect on the recession and a mistake in the long-term. With little in terms of important market data, sterling's movement against the high-yield and/or commodity backed currencies was predictably negative over the course of the week with only a brief rally from sterling regaining some of the losses on Friday. 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!

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