EURO RISE PROBLEM FOR EXPORTERS? - Yesterday the dollar hit a low of $1.4099 against the euro. This morning it has gone above the $1.41 threshold.
Trintech is an exporter of financial software and is listed on the Nasdaq. Chief executive Cyril McGuire said 80% of its sales were in the US and it reported in dollars. But he said the company's Irish and European costs were much higher as a result of a weaker dollar, though it did try to mitigate the effects by hedging on a rolling six-month basis.
The chief executive of the Irish Exporters Association, John Whelan, said many firms exported exclusively to the US, and their profits had been hit by around 2% following recent currency movements. He added that hedging was not as easy for companies focused only on the US market.
IIB Bank economist Austin Hughes said there was a risk that the dollar could weaken further as investors were losing confidence in the currency. He said investors felt there was a problem with the US economy, and this could bring the euro to $1.45.
The economist said such dollar weakness would cause problems for the European economy and the European Central Bank would have to adjust its interest rate policy accordingly.
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NEWS IN BRIEF - Oil prices were mixed in Asian trade this morning after the price of US crude broke through $84 a barrel overnight on fears that a storm could threaten facilities in the Gulf of Mexico.
Donegal Creameries has reported pre-tax profits of €4.5m for the first half off the year, an increase of almost 44% on the same period last year.
