is4profit Weekly Currency Roundup

For small businesses who need to keep an eye on how worldwide currency is performing, what is affecting it and what to keep an eye out for, we bring you the latest currency roundup for the week ending Friday the 6th July… Euro The Euro has seen a week of declines and falling confidence after last week’s ‘key’ summit of European leaders in Brussels. As the outcome of the summit was revealed the currency saw a surge against a basket of currencies but all too quickly the optimism turned into pessimism. After the initial euphoria over the fact that EU politicians could actually agree to things, investors quickly began to see the weaknesses in the proposals. For the first few days of the week the currency has remained relatively high as it rode on the crest of the genera... »

Volatile Exchange Rates Costing Small Firms

Almost a third of small firms that trade overseas are losing money due to exchange rate fluctuations, research from Foreign Currency Direct has revealed. The survey of 500 small and medium-sized enterprises (SMEs) found that 29 per cent of small firms that trade internationally are losing out because of the current volatility of exchange rates. The Foreign Currency Direct research found that because currency fluctuations of two per cent a day are not uncommon at present, small firms are struggling to keep track of Euro or US Dollar rates. However, the survey also revealed that 28 per cent of SMEs are planning to expand their overseas activities over the next 12 months. Foreign Currency Direct chief executive, Peter Ellis, warned that small firms need to assess the risks of trading in anoth... »

Currency Fluctuations

SMEs lose out to currency fluctuations

Small firms importing from the US and the EU lost almost £900 million last year by failing to protect transactions from currency fluctuations, according to foreign exchange firm World First. This year, the pound fell by nearly 20% in value against the dollar between July and October and by 7% in two days between 20 and 22 October. World First’s head of corporate foreign exchange Alex Sullivan said: “The recent dramatic slump in the value of the pound against both the euro and the dollar now means that otherwise profitable sales can become heavily loss–making,” “In the past, following a purchase of goods from an overseas supplier, a small company finance director may well have simply spoken to his bank and opted to exchange money due to be paid at the pre... »