The sharp rise in the US dollar may slice more than $100bn off dollar-denominated revenues at some of America’s largest multinationals this year, a sum larger than the combined sales of Nike,McDonald’s and Goldman Sachs, according to a Financial Times analysis.
In the first half of the year, 10 of the largest US multinationals have had their sales reduced by a combined $31bn — including blue-chip companies like Apple, General Motors, IBM, Amazon and General Electric — and concerns have mounted that a move by the Federal Reserve to lift interest rates later this year will push the dollar higher.
“Large multinationals are taking a hit from the stronger US currency,” David Lebovitz, market strategist with JPMorgan Asset Management, said. “You have downward pressure on the euro and yen coming from central banks in those regions and given a relatively unfavourable backdrop in emerging markets, we’re seeing currency depreciation there.”