Volatility in the US$5.3-trillion-a-day foreign exchange (FX) market is dragging down U.S. corporate earnings by the most since 2011, according to a report from FiREapps.
Currency fluctuations eroded earnings for the average North American company by 12 cents per share in the third quarter of 2015, according to the Scottsdale, Arizona-based firm, which advises businesses and makes software to help reduce the effect of foreign-exchange swings. That's the most in data going back at least four years, and is up from an average 3 cents per share in the second quarter.
“This is the worst I've seen it,” FiREapps chief executive officer Wolfgang Koester said in a telephone interview. “Investors and analysts are taking a very close look at corporate results impacted by foreign exchange and recognize how material they are.”
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