RETAILERS IN Newry and Derry are enjoying a "euro dividend" as record numbers of shoppers from the Republic go North to take advantage of the current strength of the euro against the pound.

Businesses in both centres have reported an increase in the number of euro transactions and say the current trend, which saw sterling fall yesterday to an all-time low of 80 pence against the euro, will continue to boost trade from the Republic.

Many businesses estimate that at least 30 per cent of their daily trade is currently from euro transactions.

Cathal Austin, centre manager for the Quays Shopping Centre, said Newry is definitely ahead of the game when it comes to retail trading patterns in other parts of the UK.

Latest retail figures show the credit crunch has had a severe impact on consumer spending across the UK, but Mr Austin claims Newry has escaped the general slowdown.

"We have the advantage of operating in two currencies and that gives us some protection. We have seen a big increase in the number of people coming to the Quays since this time last year and a lot of those are coming from across the Border and not just from Border areas but from Dublin too."

The weak pound has boosted speculation that the Bank of England's monetary policy committee will move to cut interest rates in the UK today.