Sterling sell-off against euro could start again

Sterling fell to its lowest level against the dollar since 2009 but was little changed against the euro at almost 76.5 pence after Bank of England governor Mark Carney yesterday signalled a boost to UK interest rates is still some way off.

However, sterling has significantly weakened against the euro from 72.5 pence just a month ago — substantially eroding a some of the benefits that have driven Irish exports into Britain for over a year.

Futures markets now predict only a 10% chance the Bank of England will hike interest rates this year, and may now await until 2017, said Philip O’Sullivan, chief economist at Investec Ireland.