Continuing fall in euro gives boost to Irish exporters
Irish exporters are set for a renewed boost with the euro primed to continue a three-month slide after data showed inflation across the single currency area stayed near zero last month.
The latest numbers pile pressure on European Central Bank President Mario Draghi and the ECB to boost quantitative easing (QE) even further at a policy meeting today, in a bid to help revive the region's faltering economy. That will further weaken the currency.
The euro dropped 0.4% to $1.0596 yesterday, after sliding 5.5% since the end of August.
Every 1% decline of the euro against the dollar increases Irish goods exports to the US by 1%, according to research published by the National Treasury Management Agency (NTMA).
The equivalent response for exports to the UK is 0.5% and to the rest of world is 0.9%. The Irish state agency says changes in the euro dollar exchange rate even have a positive effect on Irish goods exports to rest of the euro area. That is because of the high share of sales from Ireland to euro area nations that are ultimately sold on to the wider world.