Because 24% of sales on average of companies in the S&P 500 index comes from outside of the United States, the rise in the dollar might lead to revenue and earnings disappointments this year as the companies translate foreign exchange into dollars, according to a report by Goldman Sachs. Since bottoming in spring 1995, the trade-weighted dollar has risen 9%.
``Assuming no hedging, every 1% increase in the dollar costs 24 basis points in sales growth and something a bit more in earnings growth,'' the report said. Steven G. Einhorn, head of global investment research, wrote the report with two colleagues.
