Irish punt remains under ERM pressure
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The Irish punt remained under severe pressure in the European exchange rate mechanism yesterday, with dealers confident that the incoming coalition government will soon yield to pressure for a devaluation.
The punt was fully stretched in the system, 2.25 per cent below the strongest ERM currency, the Dutch guilder.
Some dealers said the punt could be devalued as early as this weekend, although most believe the EC monetary committee will meet to agree a realignment in a week's time.
But the Irish finance ministry is holding out. 'We are not seeking a realignment of the system. We are also firmly against the unilateral devaluation of the punt. We just do not want to go down that road,' a spokesman said.
Thursday's reduction in the German repo rate appeared, however, to have relieved the pressure on the French franc.
The currency remained around 3 pfennigs above its floor in the system.
Dealers concluded from the German repo move that the key Lombard and discount rates may be cut next month.
The Bundesbank's representative at the German embassy in Paris said on French radio that 'we just need to wait a few more weeks or maybe two months before the Bundesbank can really cut its leading lending rates'. But the Bundesbank in Frankfurt said later that the comments were 'not authorised'.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments