Smart Weekly Currency Note - 16th January 2009

Smart Currency Exchange - Weekly Currency Rates for Overseas Property Buyers

Weekly Currency Interbank Exchange Rates 16th January 2009

Currency Rate Last Week Rate This Week EURO 1.124 1.120 US$ 1.517 1.483 CAN$ 1.802 1.850 AUS$ 2.157 2.206 NZD 2.563 2.720 AED 5.572 5.450 CHF 1.690 1.661 ZAR(Rand) 14.891 14.850 Charles's Thoughts: Following record week-on-week gains against the euro last week, sterling had a steady week ending only marginally down against the euro. Persistently poor domestic data reduced sterling's gains during the week. The growing UK trade deficit, weaker-than-expected retail sales and more high-street names going into administration will have limited sterling's chances of strengthening against other major currencies. The US$ was initially buoyed by positive US trade balance figures this week but significant gains were pared back by poor US retail sales data and by Friday the US$ was heading back towards last weeks closing rates against sterling. There was also the announcement of yet another bail-out plan from the American government, this time to invest billions more tax-payer dollars into the Bank of America in exchange for preferred stock and protected loans. A good measure of the uncertainty within global markets at present is the resilience of the US$. Record low levels of inflation and persistent poor economic data have not apparently harmed the US$'s status as the world's favourite reserve currency at times of crisis. The big news in the European markets this week was the cut of 0.5% in euro interest rates by the European Central Bank (ECB) down to 2% on Thursday. As the likelihood of this cut increased during the week, the euro lost substantial ground against most major currencies and ended the week significantly lower against the US$. It was perhaps for this reason that JC Trichet, the president of the ECB, stated that future cuts to interest rates will not be considered for next month's ECB meeting. The outlook for Europe has become substantially bleaker as there is a stronger realisation of how poor economic conditions are in several of the key member. This could be a bad year for the euro. Against the high-yield and/or commodity backed currencies, sterling made substantial gains, closing out the week up on 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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