The decline in the value of the pound on the foreign exchange markets brings further good news for Irish exporters but is likely to gradually push up the cost of living in the Irish economy.
Smaller Irish-owned companies exporting to Britain are among the main beneficiaries - with the latest bout of weakness following a very favourable rate against sterling for more than a year.
Companies with subsidiaries in the UK, US and throughout Europe will also be able to generate higher profits from these operations when translated back into Irish pounds. Companies such as AIB and Bank of Ireland, for instance, should see higher profits from their UK and US operations respectively while the pound remains weak.
A weaker pound is also good news for the tourism industry and should encourage more visitors from key markets.
On the downside, the pound's drop in value will make imports from Britain, the US and Europe more expensive and could lead to some increase in retail prices. Around a third of all Irish imports come from the UK, mainly clothes, footwear and items such as magazines.
If current levels are maintained, or indeed if the pound drops even further price increases are almost certain to follow - with knock-on implications for inflation.
