THE pound strengthened slightly against sterling and the deutschmark after rumours circulated that the Germans are a seeking a delay on monetary union, remaining above the key DM2.60 level.

Until recently international speculators sold off the currency as soon as it breached this level, believing that it would eventually have to fall to around DM2.41 on entering the single currency.

The pound closed at 92.80p yesterday from 92.48p a day earlier and at DM2.6015 from DM2.6031.

Remarks made by the Fianna Fail leader, Mr Bertie Ahern also affected the pound. In an interview on RTE radio, Mr Ahern appeared to cast doubts on whether or not Ireland would join the single currency without the UK.

"If they were not going to go in in the long term I think that puts a lot of pressure on us which we would need to think long and hard about."