The dollar’s slide is a welcome boost for US companies. A weaker currency not only allows exporters to gain market share and boost their margins, but also benefits those firms selling goods at home that compete with imports. In addition, a significant chunk of US companies’ overall profits comes from their foreign operations. As the dollar falls, overseas earnings are worth more in US currency. That being said, it is not all good news for the US corporate sector given the state of the local economy. The equity market also appears to have already factored in a lot of the positive news.
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