- October 7, 2022
- Posted by: Stratford Team
- Category: Economy
NEW YORK, Oct 7 (Reuters) – A towering rally in the U.S. dollar is expected to hit third-quarter corporate earnings, potentially presenting another obstacle to stocks in a year that has experienced an already-painful market decline.
The dollar index , which measures the greenback’s performance against a basket of peers, traded an average of 16.7% higher in the quarter that ended Sept. 30 than in the same period a year ago, helped by a hawkish Federal Reserve and turmoil in global financial markets that boosted the dollar’s safe-haven appeal.
That means a wide range of companies will likely cite the dollar’s rise as a headwind to their bottom lines as corporate earnings season kicks into gear this month. A stronger buck makes U.S. exporters’ products less competitive abroad while hurting U.S. multinationals that need to exchange their earnings into dollars.
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The stronger dollar is “one of the…
