Smart Weekly Currency Note - 2nd January 2009

Smart Currency Exchange - Weekly Currency Rates for Overseas Property Buyers

Weekly Currency Interbank Exchange Rates 2nd January 2009

Currency Rate Last Week Rate This Week EURO 1.052 1.044 US$ 1.472 1.445 CAN$ 1.791 1.755 AUS$ 2.159 2.042 NZD 2.595 2.467 AED 5.499 5.309 CHF 1.590 1.562 ZAR(Rand) 14.601 13.492 Charles's Thoughts: Due to the holiday season, there was very little in terms of market data out this week. However sterling did stumble to yet another record low against the euro early on before rallying by about 2% on Wednesday back up to last week's levels. The Nationwide Building Society announced that as well as house prices having fallen by over 16% in 2008 that they will now be activating a clause in the contracts for their 'tracker' mortgages meaning that further cuts in interest rates will definitely not be passed on should the Bank of England lower interest rates again in the coming months. This demonstrates a clear expectation by Nationwide for interest rates to be lowered further and is likely to lead to other major players in the lending sector to follow suit. Consumer confidence has been rocked by the fall-out of the credit crisis so far but a refusal to pass on the savings on interest by the banks whom have been blamed for creating the mess will surely cause further upset. Sterling's price against the US$ blipped in the middle part of December but has subsequently continued the trend of hitting multi-year-lows and closed the week moving toward the £0.70/$1USD mark. Market data released this week showed consumer confidence had fallen in the US substantially below expectations but a marked improvement on the estimates for unemployment saw the US$ have a mixed week. One matter of interest for next week will be the Federal Reserve's Janet Yellen who speaks on fiscal policy in San Francisco on Sunday. The Euro was also subject to mixed market data this week but with no big surprises coming from the news there was little in terms of significant movement. French GDP figures were as expected and Retail Purchasing Manager Index figures were mildly positive. However, the important trends seem to have been set and due to the projected scale of the economic downturn ahead for Europe in 2009 it is simply the absolute weakness of sterling which flatters the euro at present. There was no big news on the high-yield and/or commodity backed currencies this week. 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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