European companies are facing the largest currency risks in four years due to the strengthening of the euro in 2025, which reduces their projected profits. Over the year, the dollar has fallen by 10% against the euro due to concerns about the US economy and tariff policy, while the euro has strengthened due to improved European economic prospects and expected stimulus. Exporters, most of whose income is generated in dollars, lose on conversion, and their products become less competitive. SAP SE expects revenue growth in the cloud division to decrease by 3.5 percentage points, Adidas attributes weak revenue to the strengthening of the euro, and Nokia estimated exchange losses at 230 million euros. SKF and Atlas Copco also reported the pressure of a weak dollar on their margins. Although companies have adapted to the tariffs, exchange rate fluctuations have become an unexpected challenge. The industrial, consumer and pharmaceutical sectors have been the hardest hit, while banks and utilities are showing resilience.
PAUTAN SEGERA