Smart Weekly Currency Note - 6th March 2009

Smart Currency Exchange - Weekly Currency Rates for Overseas Property Buyers

Weekly Currency Interbank Exchange Rates 6th March 2009

Currency Rate Last Week Rate This Week EURO 1.127 1.117 US$ 1.429 1.413 CAN$ 1.812 1.820 AUS$ 2.222 2.204 NZD 2.842 2.816 AED 5.252 5.191 CHF 1.668 1.636 ZAR(Rand) 14.372 14.881 Charles's Thoughts: With little else in terms of other significant economic data due out, the main focus for the week was the rather predictable decision from the Bank of England on interest rates. The decision to cut by another 0.5% to set a new base rate of 0.5% did not have any immediate effect on the value of sterling as the news was so widely expected but the "promise" of quantitive easing is undermining sterling and limiting possible upside movement. Against the euro and the US$ sterling slid by roughly 1.5% at the start of the week but by the end of the week sterling closed only marginally lower to the week's opening prices. No rays of sunshine on the horizon for the foreseeable future. In a week when the two premiers of the UK and the US met to discuss the situation in the global economy as well as flaunt the 'special relationship' shared between the two nations, the positions of sterling and the USD in the financial markets could not be more different. The US$ is seemingly impervious to usual market influences and defiantly maintains the safe-haven asset status which has kept the US$ unnaturally strong against all other major currencies despite consistently poor economic data. Eurozone GDP figures shortly preceded this week's other important European economic news of an interest rate cut by 0.5% to a new record low for the single currency. However, with the interest rate decision and the GDP figures both coming in as expected, the euro simply maintained a steady value against most major currencies including sterling and the US$. Inflation, or a lack of it, still remains a major concern for the European Central Bank as forecasts suggest that the future months will be running under the target rate of 2%. This will almost certainly lead to further cuts in euro interest rates if correct and will test the euro's resilience in the middle stretch of 2009. Among the high-yield and/or commodity backed currencies, the Reserve Bank of Australia decided this week to buck the recent global trend of lowering interest rates to instead hold their interest rate at 3.25%. The news was positively received and lead to gains on the following day's trading, and all in spite of recent news that the Australian economy had contracted in the fourth quarter of 2008, the first time it has done so in eight years. 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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