MOTORISTS and holiday-makers will be delighted today after the £1 hit €1.40 on the currency markets.
But it’s bad news for Derry’s retail and tourism sector hoping to attract business from the Republic and EuroZone.
It is also bad news for local companies exporting to the south.
Over the course of this week the GBP/EUR exchange rate touched several fresh 7-year highs before closing out last week week trending above 1.39.
A number of factors supported Sterling’s upswing against the Euro, from the UK’s impressive Manufacturing and Construction Purchasing Managers Indexes to European Central Bank (ECB) quantitative easing concerns.
Both the manufacturing and construction reports showed stronger-than-forecast expansion, boding well for the UK’s first quarter growth.
Whilst petrol and diesel prices in forecourts from Muff to Lifford have steadied in recent weeks, the new exchange rates will send prices down again.
It’s also a good time to book holidays in the EuroZone, especially directly with airlines and hotels.
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