Pound soars against the euro as Tories win election
Early currency trading has seen the value of sterling bounce significantly following a Conservative win in the UK General Election.
Sterling had also risen two cents against the euro, with a pound buying €1.37 (GBP/EUR 0.72p) as of 1pm Friday, May 8.
With the UK such an important importer of Irish agricultural products falls in the value of the euro against Sterling is hugely positive for Irish trade.
With more than 40% of food and drink exports are destined for the sterling area any change in the EUR/GBP exchange rates has the potential to impact on the competitiveness of Irish food and drink exports.
By the end of 2014, the euro was over 9% weaker against the US dollar and 5% weaker with Sterling and this trend has continued into 2015.
Bord Bia has noted that the recent weakening of the value of the euro is helping to boost the competitiveness of Irish exports. Although it said it is likely to take some time before the full benefit is realised.
The value of the euro fell back to almost 72p today, compared to 85p this time last year.
The weak euro has been particularly beneficial to the beef sector. Latest UK trade data shows a notable increase in beef imports from Ireland.
Total UK beef imports in February were again above year-earlier levels. At 20,000t, volumes were up 14% on the year, according to EBLEX.
It says there was a notable increase in product from Ireland, which remained competitively priced as Sterling remained strong against the euro.