Smart Weekly Currency Note - 6th February 2009

Smart Currency Exchange - Weekly Currency Rates for Overseas Property Buyers

Weekly Currency Interbank Exchange Rates 6th February 2009

Currency Rate Last Week Rate This Week EURO 1.128 1.145 US$ 1.442 1.473 CAN$ 1.784 1.828 AUS$ 2.266 2.192 NZD 2.845 2.787 AED 5.295 5.413 CHF 1.676 1.724 ZAR(Rand) 14.737 14.276 Charles's Thoughts: Sterling suffered a shaky start to Monday, falling from the gains made at the end of the previous week. On Tuesday sterling was steady and on Wednesday began to climb across the board in anticipation of the Bank of England's (BOE) meeting for interest rates the next day. The much-expected cut of 0.5% to a base interest rate of 1% prompted sterling to surge positively against the euro and reach its highest value in approximately 2 months. There was little in terms of genuinely positive economic news for sterling and so the adjustment to these improved levels could be interpreted as a general sense that sterling has for too long now been under-priced against other major currencies. Against the US$, sterling fell early in the week but recovered through the second half and closed at its best levels in over a fortnight. On Friday the release of the 'Non-farm payroll' data showed the largest fall in these figures for 34 years which in normal circumstances would have sent the US$ tumbling against other major currencies but for its current safe-haven status. However, mass unemployment may be the first clue to the depression to follow the economic down-turn in the US and keeping safe-haven status is unlikely to last forever. After last month's meeting on interest rates JC Trichet, president of the European Central Bank (ECB), stated that he would not consider further cuts to European interest rates until the month of March, so adopting a less aggressive stance to monetary policy. As a result of this and other large issues plaguing the European economy, the euro fell against the pound and the US$ reaching its lowest value in two months this week. Although the European economy is thought to be behind in the cycle of the credit crunch, this apparent evidence of inaction by those in charge of steering the continent through the crisis is beginning to result in a loss of confidence in the euro's future. Against the high-yield and/or commodity backed currencies sterling enjoyed a positive week on the whole. Australian interest rates were cut and a new multi billion dollar stimulus package announced which helped the Australian dollar make gains across the board and throughout the week. Data showing a much larger than expected increase in Canadian unemployment saw the Canadian dollar fall sharply on Friday afternoon. 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 © 2005-2009 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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