Dollar’s Gains May Pose Risk to 2010 Profit Targets

Bloomberg reports:

U.S. companies starting to recover from the deepest recession in a lifetime face a new headwind as the dollar strengthens, threatening profit predictions for 2010.

The dollar has gained about 10.7 percent against the euro since Dec. 1 as Greece struggles with debt and the rebounding U.S. economy attracts investment. The euro may slump below $1.30 by year-end, according to forecasts at Bank of America Corp., Royal Bank of Scotland Group Plc and Jefferies Group Inc.