Exporters learning to live with strength of sterling

The strength of sterling against the euro has lasted long enough to give quality industrials and manufacturers the chance to adapt. The market has broadly taken account of the long-term relative weakness of the euro and so currency fluctuations have become less of a worry for most fund managers. Since October 1996 the pound has stayed at between $1.60 and $1.70, only recently beginning to drift downwards. By contrast, the euro started the year at around 71p and has been dragged steadily down to its low point of 64p at the beginning of June, since when it has recovered just 1p. It is only ...