Sterling weakens amid Scottish independence talk

Sterling weakened against the euro yesterday as the Scottish first minister Nicola Sturgeon outlined plans for a second referendum on independence from the United Kingdom unless it can stay in the European single market.

The continued uncertainty over Brexit meant that the pound fell to a one-month low against the dollar, as Ms Sturgeon said all options were on the table to protect Scottish interests.

Sterling was down 0.5% at 84.1p against the euro.

It was trading as high as 76p against the euro on the eve of the Brexit vote in June.

Ms Sturgeon said: “It remains my view, and that of the government I lead, that the best option for Scotland remains full membership of the EU as an independent member state. Independence must remain an option for safeguarding our European status, if it becomes clear that our interests cannot be protected in any other way.”

Meanwhile, a survey by logistics company DHL Express found that SME exports to UK from Ireland remain strong despite sterling decline and Brexit fears.

DHL found from January to June that the volume of exports to the UK from SMEs grew by almost 9% compared to the same period last year.

Despite the further decline in the value of sterling since the Brexit vote, from July to November the export volume accelerated by a further 5%.

However, DHL said the analysis did show some SMEs have been forced out of the market with a decline of 4% in the number exporting to the UK since the vote.