The Irish pound lost nearly a penny in value, slipping below 83p as sterling strengthened on foreign exchange markets yesterday.

A buoyant dollar and indications that the Bank of England may yet raise interest rates from their current level of 7.25 per cent helped bolster the British currency despite the release of a British Chambers of Commerce survey showing that British exports hit a seven-year low in the first quarter.

The Irish pound closed at 82.37p sterling compared with 83.22 pence on Wednesday and slipped to $1.3947 from $1.4022.

Against the deutschmark, it remained rock steady, however, closing unchanged at DM2.5202. Analysts said the Irish pound has found a comfortable equilibrium around this level and is likely to remain in a DM2.50 to DM2.52 range as long as sterling remains above DM3.00.