AFP, Paris :
Some European exporters are beginning to worry about the strengthening euro which has rebounded from near parity with the dollar after Donald Trump’s election, though analysts see little immediate risk to growth.
Europe’s single currency surged on Wednesday to $1.1910, its highest level since early January 2015, before retreating to $1.1770 late Friday.
For European businesses heavily reliant on exports, especially in Italy and France, the strong euro could hurt the bottom line.
“There’s a general nervousness that this strong euro is beginning to impact European corporate profits-we are starting to see it in this quarter’s results,” William Hamlyn, investment analyst at Manulife Asset Management, told AFP.
Still many analysts say economic fundamentals are in favour of the euro, compared to the weak dollar and the feeble pound which has been hammered ever since Britain voted last year to exit the European Union.
And the impact of a strong euro is different depending on the country. Germany, Europe’s biggest economy, has nothing to fear for the moment, said Berenberg Bank economist Holger Schmieding, noting the euro is still far from its long term equilibrium rate of $1.25.
Some European exporters are beginning to worry about the strengthening euro which has rebounded from near parity with the dollar after Donald Trump’s election, though analysts see little immediate risk to growth.
Europe’s single currency surged on Wednesday to $1.1910, its highest level since early January 2015, before retreating to $1.1770 late Friday.
For European businesses heavily reliant on exports, especially in Italy and France, the strong euro could hurt the bottom line.
“There’s a general nervousness that this strong euro is beginning to impact European corporate profits-we are starting to see it in this quarter’s results,” William Hamlyn, investment analyst at Manulife Asset Management, told AFP.
Still many analysts say economic fundamentals are in favour of the euro, compared to the weak dollar and the feeble pound which has been hammered ever since Britain voted last year to exit the European Union.
And the impact of a strong euro is different depending on the country. Germany, Europe’s biggest economy, has nothing to fear for the moment, said Berenberg Bank economist Holger Schmieding, noting the euro is still far from its long term equilibrium rate of $1.25.
