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Dollar’s Decline Is a Rare Nasdaq Tailwind as Earnings Loom

  • Bernstein sees dollar boosting tech revenue by 1.7% to 4.2%
  • IBM and ServiceNow noted positive trends on foreign exchange
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While tech investors have plenty of issues to worry about as the sector heads into a key week for corporate earnings, one notable headwind from last year has eased in recent months: the dollar.

The dollar has weakened by about 11% against a basket of major currencies from a two-decade peak reached in September, touching its lowest since April. The trend will bolster earnings at companies that derive a greater percentage of their revenue from outside the US, as a weaker greenback means foreign revenue translates into more dollars.