The pound sterling has slumped to a two year low as tensions rise between Dublin and London over Brexit.

On Tuesday, the value of sterling relative to the euro fell close to £0.92, which is the weakest level the UK currency has traded at since August 2017.

A weaker sterling makes Irish exports much less competitive on retail shelves

A weak sterling is bad news for Ireland’s agri-food industry, with almost one-third of Irish food and drink exports destined for the UK market each year. A weaker sterling makes Irish exports much less competitive on retail shelves and erodes margins for food companies and farmer co-ops.

Financial markets are growing increasingly nervous about the likelihood of a no-deal Brexit on 31 October .

The polarised positions of both leaders has spooked financial markets in the last week and sterling has weakened accordingly. The yields on Irish bonds (Irish Government debt) have also risen as investors worry over the impact a no-deal Brexit would have on Ireland’s economy.