At 10pm on Thursday night, the results of the exit polls in the UK general election revealed a commanding victory for Boris Johnson and the Conservative party. The Tories will now be in government in the UK for the next five years, with a comfortable 40-seat majority.

One thing is now certain – the UK will be leaving the EU at the end of January 2020. After months of uncertainty, currency markets reacted favourably to the decisive victory for Boris Johnson.

Almost immediately after the exit polls were revealed, the pound sterling strengthened below 83p against the euro and has continued to trade at this level throughout Friday morning.

Strongest

This is the strongest level for the UK currency against the euro in three and a half years. The last time sterling traded at this level against the euro was for a very brief period in the aftermath of the Brexit vote in June 2016.

A strengthening pound is a positive for Irish farmers and food exporters, as it makes Irish beef and dairy exports more competitive in the UK market.

Since early August, the pound sterling has now moved from 94p against the euro to below 83p this week, which is a significant swing.