Smart Weekly Currency Note - 5th December 2008

Smart Currency Exchange - Weekly Currency Rates for Overseas Property Buyers

Weekly Currency Interbank Exchange Rates 5th December 2008

Currency Rate Last Week Rate This Week EURO 1.180 1.153 US$ 1.479 1.460 CAN$ 1.901 1.889 AUS$ 2.368 2.304 NZD 2.797 2.782 AED 5.434 5.364 CHF 1.811 1.786 ZAR(Rand) 15.735 15.307 Charles's Thoughts:  Another week in the doldrums for sterling saw it fall against almost all major currencies, reaching a new record low against the euro and a multi-year low against the US$. The main focus of the week was the decision on interest rates from the Bank of England (BoE). Cutting UK interest rates from 3% to 2% was the expected move from the BoE with an eye on boosting the economy and helping thee ailing credit markets. However, the lack of any significant movement since the decision is testament to the limitations of monetary policy and how it will help the flagging UK economy in the short term. A report from the National Bureau of Economic Research published early in the week which suggested that the US$ had been in recession throughout 2008 meant that the US$ had a poor start to the week. However, the fundamental strength in the US$ relative to sterling has been maintained by a continuing lack of other safe haven assets available. Poorer than anticipated Non-Farm Payroll figures and month-on-month unemployment data for November failed to see sterling make any headway against the US$, closing roughly 4.5% lower on the week. Eurozone interest rates were also cut by a record 0.75% on Thursday from 3.75% to 2.5%. Though the decision from the European Central Bank was a little more guarded than that of the Bank of England, the cut did little to affect the euro’s value in the markets. Future projections for the European economy suggest that inflation will remain under control and close to the 2% target but the outlook for the Eurozone economy is continuing contraction until late 2009. European Gross Domestic Product data came in much as expected and made for a rather uneventful week for Europe. Of the high-yield and/or commodity backed currencies there was significant movement from the Australian Dollar as The Reserve Bank of Australia cut interest rates from 5.25% to 4.25%. Gaining against most major currencies the Aussie Dollar closed the week 3% up against sterling. 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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