A long stay out of the single currency could hurt London's interest as a financial centre, the Lord Mayor of London said yesterday.

According to Lord Levene, the City of London's representative and Lord Mayor, there has not yet been a challenge to London's dominance, but the City cannot sit on its laurels. If joining the single currency were to be ruled out by British government for a long time, there would be concerns, he said.

In Dublin as part of a tour of European capitals, Lord Levene, met with the governor of the Central Bank Mr Maurice O'Connell and with representatives of Irish financial services and other industries.

One of London's fears is that political pressure will be put on market players across Europe to do business with other members of the single currency.

"There could be pressure from governments who would like to see more done nationally. But there could also be a motive to put more pressure on the British government to join the euro," he told a press conference in Dublin yesterday.

Lord Levene, who is also chairman of Bankers Trust, pointed out that trading in euros from London is twice the volume of the other European centres put together. But he added that London cannot be complacent. Pointing to the problems which futures exchange Liffe experienced, he said the message is that nothing can be taken for granted in the fast moving world of financial services.

"The euro zone should treat the City as a major international asset, but it is not always easy to get that message across," he said.

Lord Levene said that the response from Portuguese, Austrian and Irish officials and bankers has been positive. And in Ireland said he said there is a recognition that a common bond is still there. Although he added one Irish executive had pointed out that the very fact he was undertaking this tour pointed to a certain set or concerns.