The dollar, up 8.4 percent against a basket of currencies in 2015, is expected to see further gains next year as the United States hikes rates while other countries continue easy money policies.
That could further pressure sales of U.S. companies with heavy international exposure because it makes U.S. goods more expensive overseas.
"If we have a similar movement to last year, then we're going to have roughly a $28-billion hit to corporate America," said Wolfgang Koester, chief executive of currency risk consulting firm FireApps.
He said he expects the dollar to shave 3 to 4 cents from first-quarter earnings of U.S. companies with foreign exposure.
No comments:
Post a Comment