Analysis-Dollar’s stubborn strength dents US companies’ earnings cheer

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Analysis-Dollar’s stubborn strength dents US companies’ earnings cheer

NEW YORK - A host of U.S. companies are faced with a problem they had not expected to confront this year: a rising dollar.

To prevent exchange rate moves creating big swings in earnings, businesses use various hedging strategies including those that employ forward and options contracts. Karl Schamotta, chief market strategist at payments company Corpay, said the subdued level of currency volatility may be making some companies "almost too complacent about the risks they are facing."

 

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