Currency affected by North American businesses rose in first quarter, Kyriba says
NEW YORK, July 13 (Reuters) – The negative impact of currency fluctuations on the results of North American companies increased in the first quarter to reach its highest level since the second quarter of 2020, data from the company showed on Tuesday. Kyriba treasury and financial management.
The collective impact of the exchange rate, including on businesses in the United States, Canada and Mexico, was $ 5.87 billion in the first quarter, compared with a negative effect of $ 1.39 billion in the first quarter. fourth quarter 2020, Kyriba said in a report. It was the largest since an impact of $ 14.16 billion in the second quarter of last year.
S&P 500 (.SPX) companies are just starting to report second quarter 2021 results. JPMorgan Chase & Co. (JPM.N) and Goldman Sachs (GS.N) both released results earlier on Tuesday. Read more
The rise in total currency impacts is “a break from the downtrend” of the past two quarters, and is potentially due to continued volatility in the US dollar, Kyriba said in its report.
âAs businesses experience an increase in post-pandemic activity, CFOs have been unable to track currency movements, unnecessarily risking corporate liquidity,â Kyriba’s Wolfgang Koester said in a statement. .
Kyriba said 77 North American companies reported currency impacts in the first quarter, up from 28 in the fourth quarter of 2020 and 69 in the third quarter of 2020.
The US dollar index rose 3.6% in the first quarter of this year, but has weakened since then. It lost 0.9% in the second quarter.
On Monday, the dollar climbed across the board as concerns over the coronavirus pandemic encouraged investors to seek safe havens. Read more
A stronger dollar makes overseas sales less valuable when converted back to US currency.
Reporting by Caroline Valetkevitch; Editing by Richard Pullin and Paul Simao
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