Smart Weekly Currency Note - 13th March 2009

Smart Currency Exchange - Weekly Currency Rates for Overseas Property Buyers

Weekly Currency Interbank Exchange Rates 13th March 2009

Currency Rate Last Week Rate This Week EURO 1.117 1.083 US$ 1.413 1.395 CAN$ 1.820 1.780 AUS$ 2.204 2.123 NZD 2.816 2.661 AED 5.191 5.129 CHF 1.636 1.660 ZAR(Rand) 14.881 13.953 Charles's Thoughts: Having weakened off slightly in previous week’s trading, sterling continued a downward trend against most major currencies throughout this week. Persistent concerns within the UK banking industry as well as weak economic data such as a marked fall in month-on-month industrial production kept sterling under pressure and at a low ebb sliding to a 6 week low against the euro. The Bank of England (BoE) initiated its quantitive easing measures on Wednesday which brought about little reaction on the markets and with little market data published in the latter part of the weak sterling stabilised and even recovered some lost ground. According to a broader analysis of recent data, the UK recession is still gathering momentum and points to harder times to come. However, in spite of the tough decisions and some may consider risky actions taken by the government and the BoE to limit the damage of the recession, the UK could be considered to be ahead of the curve and even tougher times will surely come to those countries and governments who have lagged behind in their responses to the global downturn. This may be of benefit to sterling in the medium term. The US$’s position as a safe-haven asset was reinforced this week thanks to speculation against the future strength of Japanese Yen alongside action taken by the Swiss National Bank to purchase vast amounts of foreign currency in an attempt to purposefully devalue the Swiss franc. US trade deficit figures, released on Friday, were more favourable than expected and helped bring some optimism and risk-appetite to investors and a slight fall in the US$ across the board. Otherwise, there was very little significant US economic data during the week meaning the US$ fell marginally against the euro and closed the week fractionally higher against sterling. In a time of such uncertainty in markets it is very difficult to see when and what will actually bring about the level risk-appetite to which will result in a more realistic value to the US$. The Euro made small but steady gains against sterling and the US$ this week despite a lack of significant economic data. The recent fall in value of some of the smaller European currencies heightened speculation that the euro may well be adopted sooner than scheduled by the countries concerned and would have contributed to some of the euros strength. I also wonder if the market is positioning the euro to make another attempt on sterling euro parity. Not a huge amount of logic as to why we would see this as most believe that sterling is oversold but logic doesn’t always apply. We wiil have to wait and see. Due to an increase in risk appetite and increase in demand (in particular Chinese demand) for commodities the high-yield and/or commodity backed currencies experienced a positive week on the markets. 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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