Is there a currency that the U.S. dollar has not appreciated against in the last three years? This report examines the impact of a strong dollar for firms in countries with depreciating currencies, and offers financial and strategic alternatives to navigate the foreign exchange (FX) market.
The past three years have seen a dramatic shift in the FX narrative. In that time, the dollar has appreciated against nearly 90% of all currencies, including every major global currency. Our latest research explores the other side of the coin, the effect of the strong dollar on other global currencies, which have faced FX headwinds alongside the dollar’s rise.
Significant currency changes impact most aspects of corporate finance including capital structure, distribution policy, M&A strategy, liquidity, earnings and risk management. When faced with currency mismatches, decision-makers should consider the full range of financial and strategic choices to determine how they can optimize results and enhance shareholder value.