Call Free Phone Now:0808 163 0102
Outside the UK: +(44) 207 898 0541 Request a Call Back
 
  Daily Currency News Euro US Dollar Educational Articles  
 
Posted June 27th, 2008 by Charles Purdy

Smarts Weekly Currency Note – 27th June 2008

 
  Smart Currency Exchange – Weekly Currency Rates for Overseas Property Buyers  
Weekly Currency Interbank Exchange Rates 27th June 2008


Currency
Rate Last
Week
Rate This
Week
EURO
1.265
1.266
US$
1.976
1.994
CAN$
2.011
2.018
AUS$
2.071
2.074
NZD
2.590
2.617
AED
7.256
7.323

CHF

2.042
2.036

ZAR(Rand)

15.833
15.760

Charles’s Thoughts:  Sterling sentiment hasn’t changed over the last week. Problems still abound with UK inflation high and the UK economy slowing. The housing market is still suffering and as the credit crunch continues to bite, mortgage approvals have fallen significantly, we are far from seeing an end to the uncertainty. The Bank of England meets next week and the expectation that given the current diverse position noted above they will sit on their hands and keep UK interest rates unchanged. Do they have any other option? Probably not but are we in for a surprise?

The US$ did lose ground on the back of the Fed meeting this week in which they kept US$ interest rates on hold. This wasn’t a surprise but it was the lack of insight as to future direction in the accompanying statement that left the market wondering and worrying. Rhetoric from senior US officials over the last few weeks had supported a strengthening US$ but given the lack of support from the Fed statement the market took this support to be somewhat hollow. Hence the fall in the US$.

The Euro has held steady against sterling. The European Central Bank meets next week and is expected to increase € interest rates by 0.25%. This is on the back of high Euro land inflation. However Euro land economic conditions seem to be worsening quicker than expected and this will act as a “natural” break on inflation. It would be a real surprise if rates were not increased but this increase should be the last for the foreseeable future.

Again, very steady as she goes for sterling against 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 currency transactions go so smoothly. As promised, our account was opened within hours. Your trading team 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 currency rate noted above. But note this is based on the inter bank rate so the actual cost will be slightly more.

Charles Purdy
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

   


Smart Currency Exchange | 1 Hammersmith Grove | Hammersmith | London | W6 0NB | UK

© 2005-2008 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!





SCE/OGC

1 Hammersmith Grove
London, London
W6 0NB
GB

If you no longer wish to receive communication from us:
Cancel

To update your contact information:
Update

Leave a Reply

You must be logged in to post a comment.

Posted June 26th, 2008 by Charles Purdy

Smarts Daily Currency Note – 26th June 2008

 
Smart Currency Exchange – Daily Currency Rates for Overseas Property Buyers  
Free Daily Inter Bank Currency Exchange Rates 26th June 2008

Currency

Rate

EURO

1.261

US$

1.973

CHF

2.048

CAN$

1.993

AUS$

2.058

Comments:  Another steady day for sterling. The US Fed met yesterday and kept US interest rates on hold. However the US$ lost ground as the Fed gave no clear indication for future interest rates. The US economy and inflation are moving in opposite directions which makes it very difficult to work out what will happen next so perhaps the only option is to sit on the fence. Here in the UK it is much the same.

Note:  All rates are mid market inter bank and indicative at the point of publication. 

To get an initial estimate of the cost of a property simply DIVIDE the price of the property by the appropriate currency rate noted above.



Smart Currency Exchange | 1 Hammersmith Grove | Hammersmith | London | W6 0NB | UK

© 2005-2008 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 valid at a moment in time.
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 recommend 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 pain!



SCE/OGC

1 Hammersmith Grove
London, London
W6 0NB
GB

If you no longer wish to receive communication from us:
Cancel

To update your contact information:
Update

Posted June 25th, 2008 by Charles Purdy

Smarts Daily Currency Note – 25th June 2008

 
Smart Currency Exchange – Daily Currency Rates for Overseas Property Buyers  
Free Daily Inter Bank Currency Exchange Rates 25th June 2008

Currency

Rate

EURO

1.265

US$

1.968

CHF

2.052

CAN$

1.993

AUS$

2.059

Comments:  UK mortgage approvals hit record lows in May. Not a surprise given the parlous state of the housing market. US consumer confidence continues to wane and increasing oil prices don’t help the US$ either. Euro land consumer confidence is also falling, including Germany, and so all in all the negatives countered each other and we saw very little movement in the respective exchange rates.

Note:  All rates are mid market inter bank and indicative at the point of publication. 

To get an initial estimate of the cost of a property simply DIVIDE the price of the property by the appropriate currency rate noted above.



Smart Currency Exchange | 1 Hammersmith Grove | Hammersmith | London | W6 0NB | UK

© 2005-2008 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 valid at a moment in time.
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 recommend 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 pain!



SCE/OGC

1 Hammersmith Grove
London, London
W6 0NB
GB

If you no longer wish to receive communication from us:
Cancel

To update your contact information:
Update

Posted June 24th, 2008 by Charles Purdy

Smarts Daily Currency Note – 24th June 2008

 
Smart Currency Exchange – Daily Currency Rates for Overseas Property Buyers  
Free Daily Inter Bank Currency Exchange Rates 24th June 2008

Currency

Rate

EURO

1.266

US$

1.967

CHF

2.055

CAN$

1.998

AUS$

2.064

Comments:  It seems to be a case of bad news all round resulting in currencies trading in narrow bands against each other. Sterling has been oscillating around the €1.25/£1 rate against sterling. The European Central Bank is still minded to increase interest rates as inflation seems to be their main concern whereas the downturn seems to be gaining momentum as all major Euro land economic indicators show contraction. House prices in the UK continue to fall. So it seems to be a case of no one is sure where the worse problems lie and as such there is no momentum for any currency in particular.

Note:  All rates are mid market inter bank and indicative at the point of publication. 

To get an initial estimate of the cost of a property simply DIVIDE the price of the property by the appropriate currency rate noted above.



Smart Currency Exchange | 1 Hammersmith Grove | Hammersmith | London | W6 0NB | UK

© 2005-2008 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 valid at a moment in time.
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 recommend 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 pain!



SCE/OGC

1 Hammersmith Grove
London, London
W6 0NB
GB

If you no longer wish to receive communication from us:
Cancel

To update your contact information:
Update

Posted June 20th, 2008 by Charles Purdy

Smarts Weekly Currency Note – 20th June 2008

 
  Smart Currency Exchange – Weekly Currency Rates for Overseas Property Buyers  
Weekly Currency Interbank Exchange Rates 20th June 2008

Currency
Rate Last
Week
Rate This
Week
EURO
1.268
1.265
US$
1.943
1.976
CAN$
1.995
2.011
AUS$
2.075
2.071
NZD
2.600
2.590
AED
7.135
7.256

CHF

2.044
2.042

ZAR(Rand)

15.846
15.833

Charles’s Thoughts:  Sterling maintained its “steady as she goes” stance although there have been a few waves along the way. First was the open letter from the Bank of England to the Government explaining why inflation was over 3% when the target was 2%. The problem is that the main factors affecting inflation, energy and food costs, are outside the BOE’s control while at the same time the UK economy is suffering. Therefore trying to bring UK inflation under control by significantly raising UK interest rates was not really an option. Then the minutes of the last BOE meeting even showed that one member had voted to reduce UK interest rates. At the end of the week UK retail figures for May were released which showed a 3.5% increase against a forecast fall. This was much higher than expected. So by the end of the week we seemed to be back where we started which is reflected in most of the exchange rates.

After last weeks rhetoric a bit of a reality check for the US$ as it lost ground. The US economy is not doing well, house prices continue to fall and unemployment is on the rise. A lot of US companies are seeing their earnings forecasts cut significantly. However, sterling has very similar problems and as such any gains made by sterling one week could very likely be given back the following week.

No significant news to affect the € this week. The major plus that Euro land has enjoyed recently is that in Germany it has a highly developed and efficient industrial power house and apart from places like Spain and Ireland house prices are not too high. Next week we will see a raft of information which will give us a clearer feel as to the likely direction of Euro land interest rates.

Very steady as she goes for sterling against 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 currency transactions go so smoothly. As promised, our account was opened within hours. Your trading team 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 currency rate noted above. But note this is based on the inter bank rate so the actual cost will be slightly more.

Charles Purdy
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

   


Smart Currency Exchange | 1 Hammersmith Grove | Hammersmith | London | W6 0NB | UK

© 2005-2008 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!



SCE/OGC

1 Hammersmith Grove
London, London
W6 0NB
GB

If you no longer wish to receive communication from us:
Cancel

To update your contact information:
Update

Posted June 19th, 2008 by Charles Purdy

Smarts Daily Currency Note – 19th June 2008

 
Smart Currency Exchange – Daily Currency Rates for Overseas Property Buyers  
Free Daily Inter Bank Currency Exchange Rates 19th June 2008

Currency

Rate

EURO

1.260

US$

1.961

CHF

2.029

CAN$

1.997

AUS$

2.072

Comments:  Sterling had a steady day. The Bank of England minutes from their last meeting showed that had been one vote for a reduction in UK interest rates and some discussion for an increase. Very difficult given the high level of inflation and the poor economic performance. Sterling is likely to potter along for a while.

Note:  All rates are mid market inter bank and indicative at the point of publication. 

To get an initial estimate of the cost of a property simply DIVIDE the price of the property by the appropriate currency rate noted above.



Smart Currency Exchange | 1 Hammersmith Grove | Hammersmith | London | W6 0NB | UK

© 2005-2008 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 valid at a moment in time.
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 recommend 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 pain!



SCE/OGC

1 Hammersmith Grove
London, London
W6 0NB
GB

If you no longer wish to receive communication from us:
Cancel

To update your contact information:
Update

Posted June 18th, 2008 by Charles Purdy

Smarts Daily Currency Note – 18th Juen 2008

 
Smart Currency Exchange – Daily Currency Rates for Overseas Property Buyers  
Free Daily Inter Bank Currency Exchange Rates 18th June 2008

Currency

Rate

EURO

1.259

US$

1.952

CHF

2.035

CAN$

1.988

AUS$

2.073

Comments:  Sterling had a tough day yesterday as inflation came in at 3.3% against a target rate of 2%. This forced the Bank of England to write an open letter to the UK Government. Normally the course of action would be to raise interest rates significantly. However the BOE stressed this was very unlikely given the parlous state of the UK economy and the fact that a lot of inflationary pressure, such as energy and food prices, were outside their control. So we are likely to see only nominal increases in UK interest rates if at all in the short to medium term.

Note:  All rates are mid market inter bank and indicative at the point of publication. 

To get an initial estimate of the cost of a property simply DIVIDE the price of the property by the appropriate currency rate noted above.



Smart Currency Exchange | 1 Hammersmith Grove | Hammersmith | London | W6 0NB | UK

© 2005-2008 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 valid at a moment in time.
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 recommend 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 pain!



SCE/OGC

1 Hammersmith Grove
London, London
W6 0NB
GB

If you no longer wish to receive communication from us:
Cancel

To update your contact information:
Update

Posted June 17th, 2008 by Charles Purdy

Smarts Daily Currency Note – 17th June 2008

 
Smart Currency Exchange – Daily Currency Rates for Overseas Property Buyers  
Free Daily Inter Bank Currency Exchange Rates 17th June 2008

Currency

Rate

EURO

1.267

US$

1.968

CHF

2.046

CAN$

2.009

AUS$

2.089

Comments:  Sterling got a bit of support from Barclays Bank raising new capital without having to rely on a rights issue. Two reasons for this. One it shows international confidence in the British financial sector and second it means that Barclays Bank won’t be subject to the hedge funds trying to demolish its share price during the course of the rights issue as they did with the Royal Bank of Scotaland.

Note:  All rates are mid market inter bank and indicative at the point of publication. 

To get an initial estimate of the cost of a property simply DIVIDE the price of the property by the appropriate currency rate noted above.



Smart Currency Exchange | 1 Hammersmith Grove | Hammersmith | London | W6 0NB | UK

© 2005-2008 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 valid at a moment in time.
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 recommend 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 pain!



SCE/OGC

1 Hammersmith Grove
London, London
W6 0NB
GB

If you no longer wish to receive communication from us:
Cancel

To update your contact information:
Update

Posted June 13th, 2008 by Charles Purdy

Smarts Weekly Currency Note – 13th June 2008

 
  Smart Currency Exchange – Weekly Currency Rates for Overseas Property Buyers  
Weekly Currency Interbank Exchange Rates 13th June 2008

Currency
Rate Last
Week
Rate This
Week
EURO
1.252
1.268
US$
1.969
1.943
CAN$
2.004
1.995
AUS$
2.049
2.075
NZD
2.570
2.600
AED
7.243
7.135

CHF

2.015
2.044

ZAR(Rand)

15.465
15.846

Charles’s Thoughts:  Sterling continues to be “steady as she goes”. Over the last few weeks there has been little downward movement which suggests that sterling has found a base from which it may strengthen. The only worry is if we have another shock such as a Northern Rock. UK inflation is the major concern. Not just here in the UK but worldwide. There is even talk that the Bank of England may have to increase UK interest rates sometime soon as a counter to UK inflation. I must admit my feeling is that this is unlikely given the parlous state of the UK economy but the BOE might be “forced” to do a one off increase of 0.25%. I suspect “more steady as she goes” until we see a pick up in the UK economy.

The US$ has gained a bit of ground on the back of high level rhetoric and, if I was to be honest, wishful thinking. The US retail figures for May were better than expected. However US inflation rose sharply in May. Both these events have helped support the market view that we have seen the last reduction in US interest rates for a while. I think this is probably correct but I suspect we won’t see any increases in US interest rates for a while given the level of US personal debt and an already weak economy.

The € has lost a bit of ground against the US$. This is on the back of rhetoric from both sides of the Atlantic with the US talking up the US$ and Euro land talking down the €. This included the European Central Bank trying to make it clear that we will not see a raft of Euro land interest rate increases in the coming months, in fact probably just one. This rhetoric has been successful in the short term and it has to be remembered that Euro land does have some significant problems of its own with some areas suffering very badly from the strong €.

The main mover in the other currencies was the South African rand which lost ground. This was on the back of a less than convincing increase in South African interest rates of 0.5%. The market believed it should have been more, a lot more, so as to counter inflation.

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 currency transactions go so smoothly. As promised, our account was opened within hours. Your trading team 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 currency rate noted above. But note this is based on the inter bank rate so the actual cost will be slightly more.

Charles Purdy
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

   


Smart Currency Exchange | 1 Hammersmith Grove | Hammersmith | London | W6 0NB | UK

© 2005-2008 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!



SCE/OGC

1 Hammersmith Grove
London, London
W6 0NB
GB

If you no longer wish to receive communication from us:
Cancel

To update your contact information:
Update

Posted June 13th, 2008 by Charles Purdy

Smarts Weekly Currency Note – 13th June 2008

 
  Smart Currency Exchange – Weekly Currency Rates for Overseas Property Buyers  
Weekly Currency Interbank Exchange Rates 13th June 2008

Currency
Rate Last
Week
Rate This
Week
EURO
1.252
1.268
US$
1.969
1.943
CAN$
2.004
1.995
AUS$
2.049
2.075
NZD
2.570
2.600
AED
7.243
7.135

CHF

2.015
2.044

ZAR(Rand)

15.465
15.846

Charles’s Thoughts:  Sterling continues to be “steady as she goes”. Over the last few weeks there has been little downward movement which suggests that sterling has found a base from which it may strengthen. The only worry is if we have another shock such as a Northern Rock. UK inflation is the major concern. Not just here in the UK but worldwide. There is even talk that the Bank of England may have to increase UK interest rates sometime soon as a counter to UK inflation. I must admit my feeling is that this is unlikely given the parlous state of the UK economy but the BOE might be “forced” to do a one off increase of 0.25%. I suspect “more steady as she goes” until we see a pick up in the UK economy.

The US$ has gained a bit of ground on the back of high level rhetoric and, if I was to be honest, wishful thinking. The US retail figures for May were better than expected. However US inflation rose sharply in May. Both these events have helped support the market view that we have seen the last reduction in US interest rates for a while. I think this is probably correct but I suspect we won’t see any increases in US interest rates for a while given the level of US personal debt and an already weak economy.

The € has lost a bit of ground against the US$. This is on the back of rhetoric from both sides of the Atlantic with the US talking up the US$ and Euro land talking down the €. This included the European Central Bank trying to make it clear that we will not see a raft of Euro land interest rate increases in the coming months, in fact probably just one. This rhetoric has been successful in the short term and it has to be remembered that Euro land does have some significant problems of its own with some areas suffering very badly from the strong €.

The main mover in the other currencies was the South African rand which lost ground. This was on the back of a less than convincing increase in South African interest rates of 0.5%. The market believed it should have been more, a lot more, so as to counter inflation.

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 currency transactions go so smoothly. As promised, our account was opened within hours. Your trading team 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 currency rate noted above. But note this is based on the inter bank rate so the actual cost will be slightly more.

Charles Purdy
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

   


Smart Currency Exchange | 1 Hammersmith Grove | Hammersmith | London | W6 0NB | UK

© 2005-2008 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!



SCE/OGC

1 Hammersmith Grove
London, London
W6 0NB
GB

If you no longer wish to receive communication from us:
Cancel

To update your contact information:
Update

© Copyright 2010 Smart Currency Exchange. All Rights Reserved.
Site by Iniquus