The allure of the euro

New highs for the euro, new lows for the dollar, and weakening sterling - does it mean Ireland has become more alluring for financial professionals?

The Fed's decision to cut interest rates in the US has lead to a further downward slide on the dollar, which now stands at $1.58 against the euro - 25 cents down from this time last year. The pound, which has been floundering since late last year, now stands at around the 0.78 mark against the euro; it was at 0.68 back in October.

Has this new-found strength in the eurozone had any impact on swaying UK or US financial services professionals across to the Emerald Isle? Not really, say recruiters.

Paul Cotter, director of Joslin Rowe in Ireland, points out that in the fund admin space Ireland has always paid more than its nearest competitor - Edinburgh - and other jurisdictions are also feeling the pinch of the declining dollar.

"We have clients in Bermuda who are offering what seemed like good rates six months ago, but the weakening dollar means they don't seem so appealing now. It's swings and roundabouts. People might be influenced by the strong euro but it's not the key decision-maker - it has to be the right position for the right money."

Stephen McCullough, consultant financial sales and marketing, at recruiters Brightwater, says traders are unlikely to be influenced by a strong euro: "Most of the people I see coming back from the Square Mile are people who have Irish roots and maybe left Ireland five, 10 years ago and want to come home. Most English people moving here also do so because of family ties."

However, it's certainly had an impact on the Continent, according to one French headhunter: "Some US banks based in Paris, which still pay in dollars, have capped the exchange rate at $1.25-$1.30. They fear they may lose their competitive edge to the local banks which pay in euros."

But what about using the exchange rate, and the current lack of job security in the City, to sway investment bankers across to Ireland?

James Hayes, manager - banking and financial services division, at Robert Walters, reckons the salary differential - typically 20% - still remains a stumbling block to attracting London talent.

"However, we have still seen an increased interest from financial services professionals in the Irish market over the last six months," he says.