John Whelan: Rate cuts in US and EU could be a double-edged sword

A higher value euro could hurt profit margins of Irish firms, many of which have signed long-term fixed price contracts with clients in the US

The decision of the Federal Reserve and its chairman Jerome Powell to cut interest rates by 0.5% will weaken the dollar making Irish exports to US more expensive. Picture: Susan Walsh/AP

Earlier this month, for the first time in four years, US interest rates were cut by 0.5% as the Federal Reserve chairman Jerome Powell delivered on the much-anticipated cut in policy bank rates.

European Central Bank (ECB) president Christine La Garde beat her US counterparts in the race to reduce bank rates, cutting interest rates on September 12.