The full introduction of the euro is a "double-edged sword" for exporters, the Irish Exporters Association warned yesterday. While welcoming the new currency, Mr John Whelan, chief executive of the association, said it would put further pressure on exporters.

"The euro is undervalued. As full use of the euro as a trading currency comes into play, it is now inevitable that its current under-valuation will be adjusted," said Mr Whelan. "A move to parity between the euro and the dollar is forecast by the association over the next 12 months. This will require a 10 per cent approximate rise in the current euro value against the dollar."

The main concern of exporters is the impact of euro revaluation on competitiveness of Irish products and services, according to Mr Whelan.