Companies that are most sensitive to fluctuations in the U.S. dollar saw earnings growth four percentage points lower than firms with average sensitivity to the dollar's movement.
J.P. Morgan Asset Management segmented companies based on sensitivity to the U.S. dollar and found that the most sensitive firms had average earnings-per-share growth of 3% in the second quarter. Firms with an average sensitivity had average EPS growth of 7%, while those deemed least sensitive had EPS growth of 16% in the quarter.
Stocks were ranked by their USD sensitivity based on a regression of the change in stock returns against the U.S. dollar.
