The strength of the dollar is a “curse” on the profits of American companies due to its impact on export competitiveness and “multinational” remittances.

The strong appreciation of the US dollar is expected to pressure US corporate earnings for the third quarter, which could present another hurdle for stocks in a year that has already seen a painful downturn in the market.

The dollar index, which measures the performance of the US currency against a basket of its peers, traded an average rise of 16.7% in the quarter ended September 30 compared to the same period last year, supported by hawks of the Federal Reserve and global financial turmoil, which boosted the appeal of the dollar as a safe haven.
This means that a wide range of companies are likely to cite the rising dollar as a headwind to their bottom line as corporate earnings season begins this month.