Currency rift poses threat to Irish firms

CONTINUING uncertainty about sterling joining the euro could cause havoc for Irish firms in the months ahead, analysts warned.

At present, Irish exporters to Britain are struggling against a much weaker sterling that has in punt/stg terms, fallen in value from 85p 18 months ago to 91p.

In euro terms, the exchange rate has gone to stg71p and if the slide continues Irish firms will be in over their heads, economists have warned. The major concern is an acrimonious euro/sterling rift in the British cabinet will lead to further serious weakness in the months ahead.