The euro could fall a further 40% from its current low value of just above 60p, an economist has warned.
Any significant further fall would be bad news for UK exporters who have seen their products become more expensive in Europe since the euro was introduced.
Bronwyn Curtis, former chief economist at Nomura International, said manufacturers were paying the price for international confidence in the UK.
`Sterling will only come down if the UK outlook seems worse or Europe starts improving,’ she said.
David Burton, vice-president of Coventry and Warwickshire chamber of commerce, said there was no need for the UK to join the euro. `Businesses buy from some suppliers in euros and sell some of their products in euros. Joining would not make any difference to their costs.’