The full force of the U.S. Federal Reserve's aggressive interest rate hikes is starting to be felt during third-quarter 2022 earnings. The Fed's record increase in interest rates this year has had a nasty side effect: a record run-up in the value of the U.S. dollar. As a refresher, when the dollar increases in value versus other currencies, that lowers the value of international revenue for a company that's based in the U.S. Google is very much an international company, so the dollar's strength has taken a big bite out of reported growth. Read More...
The full force of the U.S. Federal Reserve’s aggressive interest rate hikes is starting to be felt during third-quarter 2022 earnings. The Fed’s record increase in interest rates this year has had a nasty side effect: a record run-up in the value of the U.S. dollar. As a refresher, when the dollar increases in value versus other currencies, that lowers the value of international revenue for a company that’s based in the U.S. Google is very much an international company, so the dollar’s strength has taken a big bite out of reported growth.
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