Ups and downs: Sterling enjoys late rebound on day of volatility
Sterling swung wildly yesterday, but rebounded from the day's lows last night after the news that Britain's cabinet had agreed to back the proposed Brexit withdrawal agreement.
The currency was rocked by reports that backbench Conservative MPs were considering a vote of no confidence in Theresa May.
But it bounced - trading at almost €1.15 to every £1 - after Mrs May announced she had secured her ministers' backing. It's likely that the currency will remain volatile in the coming days with the British parliament yet to vote on the agreement. Some analysts have said it is only then that sterling might see a sustained rally - if parliament votes in favour of the deal.
The value of sterling is important for Ireland because of the amount of trade that takes place between this country and the UK. If sterling falls, that makes Irish goods more expensive in the UK, posing a threat to our exporters. Despite yesterday's swings, the UK currency is substantially above its post-referendum lows.