Rise in dollar to 20-year high costs US companies billions in earnings - 13 iunie 2022

The rise of the dollar to its highest level since 2002 has led to billions in losses for US companies from detergent makers to dating apps this year. As earnings growth begins to slow, for some companies the extra currency impact will mean the difference between expanding and shrinking for the rest of the year. A strong dollar hits revenue for companies with large international businesses by reducing the value of their overseas earnings and making their products less competitive with local rivals. Microsoft (US.MSFT) this month became the most high-profile company to blame currency moves for a profit warning, slashing revenue predictions by $460mn less than six weeks after issuing bullish forecasts.

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