Currency ServicesHiFX Newsletter January 2009

2008 Currency Market Review

• Currencies from natural resource-rich countries lost momentum as commodity prices crashed down to earth

• Greenback rebounded in second-half as risk averse investors looked for safe haven assets

Major Currencies Registered Double-Digit Percentage Losses Against the US Dollar

Earlier this year, when the commodity prices skyrocketed to record territories (oil reached a peak above $147 a barrel, gold broke through US$1,000 per ounce barrier), currencies from natural resource-rich countries benefited from strong exports and gained strength against the US dollar. For example, the Canadian dollar traded near parity with the US dollar, and the Australian dollar almost reached the same level. This trend reversed, however, as commodity prices tumbled down on fears of a global economic slowdown. The Canadian dollar traded from 1.03 at the peak to 0.77 at the trough. The Australian dollar had a roller coaster ride from a high of 0.98 to a low of 0.60.

In the second-half of 2008, a chain of bad news from the financial sector (rescue of mortgage giants Fannie Mae and Freddie Mac by Federal government, bankruptcy of Lehman Brothers and the takeovers of Bear Stearns by JPMorgan Chase and Merrill Lynch by Bank of America) shook the confidence of investors and caused fear in equity markets. At the same time, worsening economic conditions across Europe spurred the ECB, Bank of England and Swedish central bank to make big interest-rate cuts. As a result, US Treasuries and the US dollar became the safe-havens of choice and the US dollar index gained 18% between July and November. Major Currency Performance Against US Dollar (12/31/07 – 12/31/08) Exchange rate fluctuations can have a major impact on the purchase price of international property. To learn more about how HiFX can help protect your clients against adverse moves in exchange rates and save money on regular money transfers, please contact us at 1 877 999 4439. Please remember to say referred by 'Americans in France'.

The USD recently gave up ground against the major world currencies as risk aversion abated and the commodities markets experienced some recovery, largely in thanks to announced economic stimulus programs in China and the U.S. However, with the continued economic declines across Europe and in anticipation of additional fallout from credit constraints and declining employment across the globe, we expect the USD to resume its strengthening run into 2009.

To find out more about the currency services HIFX provides, simply contact Jody Cracknell direct on +1 (415) 678-2770 or Toll Free: 1 (877) 999-4439 or e-mail jody.cracknell@hifx.com or visit www.hifx.com. Please remember to say referred by 'Americans in France'.