Recession to last to 2010?

Ben Bernake, chairman of the Federal Reserve in the USA, said in his speech today that the US Recession my last into 2010.

This is the first time a central bank has indicated its concerns so far into the future.

As a result, the US Dollar weakened, making sending money in Dollars cheaper this afternoon. However, the Pound is also vulnerable to such comments (when America sneezes, we catch a cold in the UK) - so today some of the gains made in recent days have been wiped out in terms of exchange rates.

Euro money transfers are some of the worst affected, down 2c this afternoon, while South African Rand transfers have also got more expensive today.

Of course, if you are bringing Euros back to the UK, the news is the other way round - and you will get more sterling than you would have done yesterday.