The drag on corporate profits from fluctuations inforeign-exchange rates is getting worse as the second quarter comesto a close.

Currency-market volatility that's almost doubled in the past 12months poses the biggest threat to earnings of any year on record,according to FiREapps, a Scottsdale, Arizona-based company thatadvises businesses and makes software to help reduce the impact ofcurrency swings. That would surpass the approximate US$47 billionin losses that North American companies reported in 2012.

Companies from Facebook Inc. to Microsoft Corp. have alreadywarned that their bottom lines will take a bigger hit than in thefirst three months of the year. While the dollar's surge is themain culprit, swings in everything from the euro to emerging-marketcurrencies are magnifying the pain and making it more expensive tohedge.