Weak euro exchange rate 'benefits exporters'

Exporters in Europe have benefitted from the weak currency exchange rate on the euro.

This is according to a recent article by Stephen Macklow-Smith, senior portfolio manager at JP Morgan Asset Management, comparing the current state of the economy with the situation in Japan in the 1990s.

Mr Macklow-Smith said: "Contrast the path of the yen in the 1990s with what has happened to the trade-weighted euro exchange rate since the global financial crisis broke in 2008.

"Rather than strengthening, the euro has actually weakened substantially."

He added that European exporters had seen "considerable" benefits from the currency's value which was "one of the reasons why eurozone industrial output has held up so well".

This morning (September 2nd), the euro picked up against the pound, trading at £0.83 at 09:15 BST.

Click here to see how much you can save with HiFX's Foreign Exchange services

Posted by Chris Smith