Sterling values take a dive

Uncertainty, and poor industrial data have caused the currency to fall by nearly 4% so far in 2016

Sterling values take a dive

(Photo by Stu Forster/Getty Images)

Sterling has fallen to its lowest level against the euro since this time last year - €1 currently buys 77p.

Values could ease further in the coming days as the Governor of the Bank of England, Mark Carney confirmed that interest rates in the UK are likely to remain at current levels for longer than expected due to ongoing concerns about deflation and slowing economic activity.

Sterling values against the euro during the last month

His speech in London sent sterling back to pre-financial crisis lows of just over £1.41 against the dollar

Many commentators are now not expecting any increase in UK interest rates until the end of 2017.

Prior to Christmas, there was wide speculation that the next rise could be as early as next Autumn.

These movements will increase Irish consumer's spending power when visiting the UK - but it will make Ireland more expensive as a travel destination for British tourists, and it makes Irish goods more costly for UK buyers.