Tag: currency impact

As the global economy becomes increasingly interconnected, currency fluctuations have a pronounced impact on the financial performance of multinational companies (MNCs). The intricacies of foreign exchange (Forex) dynamics are pivotal in shaping the valuation and profitability of MNCs included in major equity indices. The Forex Effect on Multinationals For MNCs, which operate and sell products in multiple countries, exchange rates can make or break profit margins. A strong domestic currency can erode overseas earnings when converted back, while a weaker currency can inflate them. This forex sensitivity is intricately linked to...