Sterling slide erodes gains for Irish exporters

Sterling yesterday continued to slide from its recent heights against the euro, eroding some of the exceptional advantages that have propelled Irish exporters, as British output figures appeared to show that the strong UK currency is punishing its manufacturing industries.

That, in turn, increased market bets that the Bank of England would delay raising interest rates — which would tend to buoy the currency — until late 2016.

British industrial output suffered its sharpest fall in almost two years in November and retail spending disappointed over Christmas, while the uncertainty about the date and outcome of the in/out referendum on whether Britain will remain in the EU added uncertainty to the outlook for the British economy.