Euro jumps against sterling on rate call

The euro surged against sterling yesterday after the Bank of England unexpectedly signalled that a possible rise in interest rates will be later rather than sooner.

The rise in the euro will be unwelcome for Irish exporters who have seen a huge rise in price competitiveness selling their goods and services into Britain because of weakness of the single currency over many months.

However, the euro has slid about 10% against sterling in the past year and though “chunky”, yesterday’s intra-day move may not erode too much of the price gains for Irish exporters, said Philip O’Sullivan, chief economist at Investec Ireland.