Across the developing world, currency values have plummeted over the last year. The decline has been fueled by fears of slowing economic growth and a pullback in stimulus from the Federal Reserve. That's causing pain for U.S. companies around the world.
This earnings season, companies from several industries have said their performance was hurt by the impact of foreign exchange rates on overseas revenue.
When a company like Procter & Gamble sells an item for 100 pesos in Argentina today, it's worth about $13. A year ago that sale would have meant $20 in revenue. The impact of such exchange rate swings is one reason P&G cut its forecast for earnings growth for its current fiscal year, which ends in June. It's not alone.
Companies in the Standard & Poor's 500 index generated 47 percent of their revenue outside the U.S. in 2012, according to S&P Dow Jones Indices.Associated Press