The surge in currency volatility over the past fewquarters has increased concern among corporate finance executivesabout currency exposures, and it's encouraging companies tore-examine their hedging strategies.

The effects of the currency volatility have been highlighted bythe steady parade of big U.S. corporations reporting damage fromforeign exchange (FX) moves in their first-quarter earnings.Procter & Gamble blamed FX for a 2% drop in its sales.McDonald's said currency moves took $700 million off of its Q1revenue, and Pepsi said FX was likely to trim 11% from its earningsper share in 2015.

“The companies that are taking the earnings hits derive alarge portion of their sales from outside the U.S.,” said SanjayThoppil, a solution consultant at technology provider Reval. “Mostorganizations do a great job of hedging their exposure, butcurrency volatility and a strong dollar mean a hit toearnings.”

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Susan Kelly

Susan Kelly is a business journalist who has written for Treasury & Risk, FierceCFO, Global Finance, Financial Week, Bridge News and The Bond Buyer.