History is made on the financial markets as the Irish pound falls in value below the American dollar for the first time.

Michael Geraghty, Chief Dealer at Bank of Ireland, speaks to RTÉ News about the price of the Irish punt against the US dollar.

The exporters are quite happy with the dollar price and the importers are a little bit worried.

The overall effect of the fall in the punt and the rise in the value of the dollar will be a rise in inflation as a result of higher petrol prices and imports.

The dollar still goes on rising.

There is a belief that the dollar is clearly over valued and must come down. Rising US interest rates have meant a flood of cash out of European currencies and into American dollars.

The current forecast is that the dollar will stay high for the moment until investors lose confidence in American economic recovery or see a big drop in US interest rates.

An RTÉ News report broadcast on 18 September 1984. The reporter is Patrick Kinsella.