After breaking the $1.20 mark earlier this month for the first time since early 2015, the euro fell back to $1.18 against the US dollar on Monday.More significantly in Ireland’s top export market, the sterling exchange rate has become more favourable. UK buyers are now paying 88p to buy €1 worth of eurozone products, down from 92p at the start of this month.
After breaking the $1.20 mark earlier this month for the first time since early 2015, the euro fell back to $1.18 against the US dollar on Monday.
More significantly in Ireland’s top export market, the sterling exchange rate has become more favourable. UK buyers are now paying 88p to buy €1 worth of eurozone products, down from 92p at the start of this month.
The surge in the sterling rate, which seemed on course to reach 2009 record levels in the past few weeks, has stopped for now, but it remains at one of the highest levels seen in the past five years.
Analysts attribute the recent weakening of the euro to Sunday’s German election, which saw the rise of the far right and a narrower victory for chancellor Angela Merkel than in previous votes.
The pound sterling has also dropped in value as Brexit worries cloud the UK’s economic horizon, but not as fast as the euro.
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Currency change costs LacPatrick £2.9m
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