The Trump dollar is taking a bite out of the earnings prospects for U.S. companies.
Apple Inc. is boosting the prices of iPhones sold abroad by as much as 40 percent to offset the declining value of sales in foreign denominations, which hurts its ability to compete. Industrial giant Honeywell International Inc. is trimming its sales forecast this year by $600 million and hedging in the currency markets.
Since Donald Trump’s surprise win on Nov. 8, the Bloomberg Dollar Spot Index has gained 2.8 percent on expectations for rising interest rates, even as he told the Wall Street Journal the strong U.S. currency was “killing us” and criticized China for keeping the yuan artificially low. Before the election, the greenback was already trading near the highest in more than a decade.
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