Currency war threatens export sector

The booming Irish export sector could become one of the first victims of an international currency war, according to the CEO of the Irish Export Association, John Whelan.

Mr Whelan made his comments after sterling tumbled against the euro following Moody’s Investors Service decision to cut the UK’s AAA credit rating. Sterling extended losses against the euro, falling to a 16-month low as more investors sold the pound after ratings agency Moody’s stripped the UK of its prized triple-A rating.

The euro was up 1.4% at 87.80p, its highest level since late Oct 2011, with traders also citing month-end demand for the single currency as a factor pushing it higher against the pound.