The pound has strengthened again against the US dollar - good news for holidaymakers heading for America but very bad news for West Midlands exporters like Jaguar and Land Rover.
A rise in interest rates meant the pound hit a 12-month high of $1.914 earlier this month, and while it fell following the alleged Heath-row terror plot it was up by more than 0.5 per cent to around $1.8940 yesterday.
It was offset by gains for the euro against sterling as investors bet that the European Central Bank will increase interest rates twice more before the end of the year.
While the pound's strength against the dollar will fuel demand for New York shopping trips, forecasts of $2 before the end of the year is far from good news for exporters.
The British Chamber of Commerce said a survey of 5,000 businesses had revealed a drop in export sales and orders from April to June.
BCC director-general David Frost admitted businesses faced "fierce competition" from other parts of the world, but said the rate was a major problem.
CBI economist Lai Wah Co said the rate served up pros as well as cons for UK businesses.
She said: "Yes, high sterling does mean exports become less competitively priced, but then businesses are benefiting from the fact many materials - such as oil and metals - are priced in dollars. Sterling is strong, but it has been high for a couple of years now and so businesses should be prepared."
And James Cooper, policy adviser at Birmingham Chamber of Commerce, agreed the effect was probably 50:50.
The strong pound is also proving to be a problem in attracting American tourists to the UK.