Strong Dollar to Hurt Exporters

November 22, 2016 Share Print 0

The dollar has been rising steadily since Americans elected Donald Trump as president. That’s bad news for companies that sell goods and services abroad, and some investors are ready to blame Trump for weak earnings due to the strong dollar.

But companies were already complaining about the strong dollar long before Trump was on deck for the Oval Office. There were plenty of instances of companies pointing to currency issues as an explanation for low earnings earlier this year.

Some of the big names that noted currency headwinds were Whirlpool, Kraft Heinz, Apple, Procter & Gamble and Alexion Pharmaceuticals. A strong greenback makes it more expensive for buyers in foreign countries, who are usually spending their own currency, to buy U.S.-made goods that are priced in dollars.

via CNBC

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.