| NEW YORK, April 25
NEW YORK, April 25 The effect of currency market
fluctuations on U.S. corporate results in the fourth quarter of
2016 was down sharply from a year earlier, a report from
currency risk consulting firm FiREapps showed on Tuesday.
For the fourth quarter of last year, the negative impact of
currency fluctuations on North American companies - including
the United States, Canada and Mexico - that quantified an
exchange-rate effect was $7.94 billion, up from the third
quarter's negative $6.81 billion, but sharply lower than the
negative $33.94 billion in the last quarter of 2015, according
The data also showed fewer companies overall reporting the
currency impact in the fourth quarter of 2016 compared with the
last quarter of 2015.
But elections in Europe will likely cause volatility to
increase in the coming quarters, said FiREapps CEO Wolfgang
"You're going to have this testing of protectionism, testing
of the euro, testing of the euro zone continue certainly through
the end of September ... So we expect increased volatility
versus the last couple of months, and that's going to (create)
surprises for companies," he said.
The euro surged against the U.S. dollar and the yen
sank on Monday on relief over Emmanuel Macron's victory against
anti-euro nationalist Marine Le Pen in the first round of
France's presidential elections.
The foreign currency earnings of U.S. multinational
companies are worth less in dollars when the dollar is stronger.
Conversely, the robust U.S. currency also makes American-made
goods and services more expensive overseas.
(Reporting by Caroline Valetkevitch, editing by G Crosse)