Money transfer news: US price crashes continue

Money transfers to the US could prove popular with overseas investors keen to take advantage of the low prices.

According to the latest data from ratings agency Standard and Poor's, residential property values in the US declined by 4.2 per cent during the first quarter of 2011.

This follows a 3.6 per cent drop in the last quarter of 2010, leaving the national index at a new post-recession low as the annual decline stood at 5.1 per cent compared to the same period in 2010.

The news comes as the pound's foreign exchange rate has pared losses against a weak US dollar.

Data from the US showed that jobs growth slowed sharply last month, which reasserted the stagnant view on the country's economy.

This afternoon (June 3rd), sterling's foreign exchange rate picked up, reaching $1.635 against the dollar at 16:30 BST.

David Blitzer, chairman of the Index Committee at S&P Indices, commented on the state of the US property market: "The rebound in prices seen in 2009 and 2010 was largely due to the first-time home buyers' tax credit.

"Excluding the results of that policy, there has been no recovery or even stabilisation in home prices during or after the recent recession."

He added that although there were some signs of an economic recovery last year, "the most recent data do not point to renewed gains".

Meanwhile, the pound's foreign exchange performance against the euro did not look so good.

The single currency is set to end next week almost two per cent up against sterling, according to Reuters.

This will mean that it has achieved its best weekly performance since October, as it attempts to clamber back from the economic issues of some of its debt-laden members.

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Posted by Sarah Pitton