Will a weaker euro lead to more US investment in European startups?

- Advertisement -


What startups will benefit most from a stronger dollar? And will changes in the value of major currencies lift any particular region?

- Advertisement -

The US dollar is having a good year. US dollar index, which tracks the value of the dollar against other currencies, for example, bottomed out around 95 points in early January. Since then, that figure has risen to 106.69 points to date and we have seen the US dollar reach parity with the euro, the latter currency enjoying a premium over the former for the past 20 years.


- Advertisement -

The exchange explores startups, markets and money.

Read this every morning on TechCrunch+ or get Exchange Newsletter Every Saturday.


- Advertisement -

Changes in the relative value of major currencies affect technology revenues. For example, US tech giants reported a significant impact of exchange rates on their second quarter results. Microsoft is up 12% in the second quarter of 2022, but up 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 call that the change in the value of the currency “had a significant impact in the second quarter, in particular on the depreciation of the euro against the dollar.” Indeed, the now infamous year-over-year decline that Meta reported in Q2 would have actually been 3% of revenue. growth If currencies had stayed put, Sandberg said.


Credit: techcrunch.com /

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox