A banker counting currency at a bank in Westminster, Colorado, counts out four thousand dollars. Wednesday, November 3, 2009. Rick Wilking/REUTERS Reuters, NEW YORK, July 13 – According to statistics released on Tuesday by treasury and financial management firm Kyriba, the negative impact of currency fluctuations on North American company performance grew in the first quarter to its highest level since the second quarter of 2020. According to Kyriba, the cumulative exchange rate impact on enterprises in the US, Canada, and Mexico was $5.87 billion in the first quarter, compared to a $1.39 billion negative impact in the fourth quarter of 2020. It was the highest since a $14.16 billion hit in the second quarter of 2020. Companies in the S&P 500 (.SPX) are just starting to publish results for the second quarter of 2021, with JPMorgan (JPM.N) and other banks reporting this week. The increase in total currency impacts is “a break in the low trend we’ve witnessed in the prior two quarters,” according to Kyriba, and “is probably linked to prolonged USD volatility.” According to Kyriba, 77 North American enterprises reported currency impacts in the first quarter of 2020, compared to 28 in the fourth quarter and 69 in the third quarter. The dollar index increased by 3.6 percent in the first quarter of this year, but has subsequently retreated. In the second quarter, it fell by 0.9 percent. Concerns over the epidemic prompted investors to seek a safe haven on Monday, and the dollar rose across the board. find out more When transferred back into US money, a higher dollar makes overseas sales less lucrative. Caroline Valetkevitch contributed reporting, and Richard Pullin edited the piece. The Thomson Reuters Trust Principles are our standards./n
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