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Will a weaker euro lead to greater US investment in European startups? – TechCrunch

Which startups will benefit most from a stronger greenback? And will changes in the value of major currencies lift a particular region?

The US dollar is having a good year. That US dollar index, which tracks the value of the dollar against other currencies, for example, bottomed out at around 95 points in early January. Since then, the metric has climbed to 106.69 points to date – and we’ve seen the US dollar hit parity with the euro, with the latter currency enjoying a premium over the former over the past 20 years.


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The changing relative value of major currencies is affecting tech gains. American tech giants, for example, reported major currency impacts on their Q2 results. Microsoft grew 12% in the second quarter of 2022 — but 16% if we exclude the impact of currency fluctuations. The same problem also cost Microsoft 5 percentage points of net income growth over the same period.

Microsoft was not alone. Outgoing Meta COO Sheryl Sandberg said during her company’s latest earnings report that changing currency values ​​”had a significant impact in the second quarter, particularly the depreciation of the euro against the dollar.” In fact, the now-infamous annual sales decline that Meta reported in Q2 would have actually been 3% in revenue growth would have stayed currencies, said Sandberg.

Will a weaker euro lead to greater US investment in European startups? – TechCrunch Source link Will a weaker euro lead to greater US investment in European startups? – TechCrunch

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