Irish fears focus on how low sterling will fall

Irish businesses have been put on alert about the prospects of prolonged uncertainty facing sterling and the euro — even if the UK were to vote to stay in the EU in June.

The debate about the long-term future of the UK currency has flared as the good fortune enjoyed by the many Irish exporters selling into Britain last year, at rates as low as 70 pence per euro, has reversed so swiftly.

Yesterday, the pressure on sterling continued. It was trading at one stage close to 79 pence per euro, its weakest for 14 months, marking a spectacular dive of almost 13% in just over 12 weeks.