Exporters, who might be expected to boost production to exploit a favourable exchange rate, cannot get the money to expand.

ECONOMIST: Bankruptcy in Asia

The luxury carmaker blamed a number of factors, including less favourable exchange rates, but said that revenues would still be higher.

BBC: Jaguar Land Rover sees lower profit margins

Forestry Commission Scotland said timber prices overall were 2% higher in real terms, and favourable exchange rates were helping businesses boost the home market as imports reduced.

BBC: Scottish timber harvesting at record high

Fyffes is "continuing to pursue necessary increases in selling prices in its key markets in the context of these higher costs and less favourable exchange rates, " it added.

BBC: Man with bananas

Markets in European currencies would be handier: companies that earn their profits in one currency but pay their debts in another must either gamble on favourable exchange rates or insure themselves, which adds to their costs.

ECONOMIST: Junk bonds: As European as burgers and fries | The

In a bid to offset the impact of sterling's rise and remain competitive with duty-free shops abroad, Heathrow's shops are offering travellers who pay in various foreign currencies a more favourable exchange rate than the current market rate.

ECONOMIST: Midsummer madness