EURO'S RISE ANOTHER BLOW FOR EXPORTS - Yesterday the euro hit its highest level for two years against the US dollar, having earlier struck a record high of 160.12 against Japan's yen.
The rise against the yen followed a decision by the Bank of Japan to leave its main interest rate at 0.5%.
Economist Alan Ahearne, of NUI Galway, said a strong euro was not good for Ireland due to our reliance on exports to the US - 10% of gross domestic product. He said the euro's rise made it more difficult for Irish exports in the US and compounded a loss of competitiveness from higher inflation and low productivity growth.
Mr Ahearne said lower interest rates in Japan were boosting the euro, and higher rates in the euro zone made it a more attractive place to invest. He said this could be the start of a trend, with the euro possibly going as high as $1.45 in the next few years.
The economist said the currency moves would not affect ECB considerations on interest rates, as the bank is thinking more about the internal euro zone economy, particularly the German economic recovery.
***
NEWS IN BRIEF - Exploration company Providence is to raise around €25.8m through a placing of 368 million shares at a price of seven cent.
Dublin-based pharmaceutical company AGI Therapeutics has reported a net loss of €4.3m for last year. The company specialises in gastrointestinal drug products. It listed on the IEX market in Dublin. Last year it spent €3.5m on research and development.
