Smart Weekly Currency Note - 10th January 2009

Smart Currency Exchange - Weekly Currency Rates for Overseas Property Buyers

Weekly Currency Interbank Exchange Rates 10th January 2009

Currency Rate Last Week Rate This Week EURO 1.044 1.124 US$ 1.445 1.517 CAN$ 1.755 1.802 AUS$ 2.042 2.157 NZD 2.467 2.563 AED 5.309 5.572 CHF 1.562 1.690 ZAR(Rand) 13.492 14.891 Charles's Thoughts: Sterling gained against most major currencies this week with substantial gains made against the euro. The Bank of England's (BoE) much expected cut of 0.5%, bringing UK interest rates down to an all-time record low of 1.5% had already been factored in and did nothing to harm sterling's positive start to the week. It will be interesting to see if sterling can maintain the momentum of this week in the coming weeks. The increasing speculation towards European interest rates being cut by the European Central Bank saw sterling rise approximately by 6% by the time the BoE had announced their cut. So now the onus has shifted to next week's decision in Europe to see what the trend between sterling/euro might be and whether the effects of the credit crunch in the Eurozone will finally level the playing field for sterling. Important US Non-Farm Payroll figures released on Friday were much as expected but poor enough to have weakened the US$ by more than 4% since markets opened on Monday. Barak Obama also revealed yet another American rescue plan/stimulus package which promises to pump billions of consumers' and tax-payers' dollars into failing sectors of the US economy. It was all in the name of "saving consumers and taxpayers billions" of dollars on consumer staples such as energy bills but the continuing irony of state-intervention in US business is seemingly lost on also the president elect as well as with the soon-to-depart incumbent president Bush. European reports and estimates for inflation have weighed heavily on the euro this week. Growing expectations of future interest rate cuts in Europe, with the next scheduled meeting on Thursday, will hopefully be welcomed as good news for people looking to buy euros from sterling in the coming months. Economic data releases are persistently poor and the unavoidable effects of the credit crunch seem to be finally chipping away against the resilient euro. Sterling made broad gains against the high-yield and/or commodity backed currencies, rising by over 4% against the Australian, New Zealand and Canadian dollars. 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 Lyric Square | 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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