That old bane of currency fluctuations is back, biting us on the bottom.
It’s sterling this time, which has been sliding against all major currencies for a few months or more now.
Different analysts suggest different reasons, but the bottom line is that the euro and dollar are getting stronger.
Just as things need to pick up in Ireland, suddenly everything to do with its major trading partner changes. Irish produce is now dearer to buy with sterling, so that is going to affect demand for the Irish produce.
The strength of the euro now will cause competitive difficulties for Irish companies if it is sustained in the longer term. For the UK though a weaker currency will help maybe avoid the perils of the triple dip recession which is now on the cards.
Don’t expect any relief soon from the currency mood swings.
And with Italy wobbling and discontent brewing throughout the eurozone – see Spain and presently Cyprus – the euro problem has not gone away you know.
