Smart Weekly Currency Note - 20th March 2009

Smart Currency Exchange - Weekly Currency Rates for Overseas Property Buyers

Weekly Currency Interbank Exchange Rates 20th March 2009

Currency Rate Last Week Rate This Week EURO 1.083 1.066 US$ 1.395 1.445 CAN$ 1.780 1.795 AUS$ 2.123 2.102 NZD 2.661 2.586 AED 5.129 5.31 CHF 1.660 1.63 ZAR(Rand) 13.953 13.879 Charles's Thoughts: Having made broad losses against most major currencies in the previous week, sterling continued to slide against the euro but made substantial gains against the US$. The UK unemployment figures and the minutes from the Bank of England's (BoE) last meeting on interest rates were both released on Wednesday. The minutes suggested that the BoE members would continue their 'dovish' stance on monetary policy and would look to further unconventional means of supporting the economy and liquidity, if necessary, in the months ahead. The UK unemployment figures also broke the psychological two million figure and together with the news from the BoE, sterling fell to some of its lowest levels against the euro since almost hitting parity in early January. Any upside for sterling will be limited for as long as such drastic measures from the BoE are endorsed and the IMF has also suggested that we will be the last out of the global recession. With little significant news or market data for the US, the US$ held steady in the first half of the week. However, the announcement from the Federal Reserve (Fed) that they will start their own 'unconventional' monetary policy and begin quantitive easing saw the US$ make steep losses against all major currencies in the following day's trading. An amount of over $1 trillion has been promised to help boost the suffering credit markets and buy mortgage debt. Whether this news is the 'beginning of the end' for the US$'s status as a safe-have asset and cause a major re-valuation on global markets is to be seen. The euro benefitted this week from inflation data and a business sentiment survey which turned out more favourable than had been previously expected. With little other economic data during the week, the euro maintained a steady level against most currencies and made gains against sterling and the US$ due to the poorly received news from their respective central banks. At the end of the week the euro fell from a two-month-high against the US$ thanks to a slowdown in industrial production during January. Late on Friday, comments from the European Central Bank's (ECB) Axel Weber suggested that the ECB would strongly consider cutting euro interest rates in the coming months but also questioned the value of intentional devaluation if all other major central banks are intent on doing the same. There we no major developments with the high-yield and/or commodity backed currencies. 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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