Smart Weekly Currency Note - 3rd April 2009

Smart Currency Exchange - Weekly Currency Rates for Overseas Property Buyers

Weekly Currency Interbank Exchange Rates 3rd April 2009

Currency Rate Last Week Rate This Week EURO 1.075 1.103 US$ 1.429 1.482 CAN$ 1.773 1.827 AUS$ 2.067 2.086 NZD 2.510 2.547 AED 5.247 5.444 CHF 1.635 1.680 ZAR(Rand) 13.722 13.424 Charles's Thoughts: The G20 summit in London this week had been touted during the run-up as perhaps the pivotal moment for the major powers dealing with the global recession and how we all may survive the ensuing fall-out. So far we have learnt as much about the divisions within certain camps at the meeting as we have about the actions and process for moving forward and limiting this damage. The trading week had started with sterling having lost some ground over the weekend against most major currencies but during Monday’s trading sterling rebounded higher. The positive trend for sterling continued through the week and gradually sterling’s value improved to see improvements of about 3% against the euro and 5% on the US$. Weak data elsewhere helped support sterling as almost much as some encouraging figures from the UK Purchasing Managers Index and a surprise improvement for the Nationwide House-price Index. Whether this is another false dawn for sterling is yet to be seen. Despite the American government’s refusal to bail-out their failing automotive industry at the start of the week, a renewed sense of risk-appetite partly generated by the enormous bail-out proposals at the G20 summit, weighed on the US$. Almost all significant US economic data released this week was published on Friday and turned out largely as expected. However, the multilateral agreement needed on the proposals at the G20 summit will be hard to broker for a nation so keen on keeping the free-market de-regulated and an agreement involving all main world leaders could well be down to President Obama’s flexibility at this testing time. The European Central Bank (ECB) surprised the markets on Thursday by cutting interest rates down by only 0.25% rather than the 0.5% widely anticipated by most parties. The euro interest rate, now at 1.25%, is at a record low in the short history single currency and in a statement shortly after the decision, JC Trichet, the president of the ECB, refused to rule out a further cut next month. With no other significant economic data for the euro released this week the euro gained marginally against the Swiss Franc and the US$ thanks to momentum carried from prior weeks’ trading. Sterling’s positive week saw significant improvement to prices against all 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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