Foreign Exchange To Have Mild Benefits

Piper Jaffray has released its report covering the Medical Diagnostics sector. Its Forex analysis has suggested a 0.3% y-o-y USD weakening.

It has also predicted -2.0% sequential strengthening of USD vs. its weighted basket of currencies, which consists of 51% USD and 49% OUS. For ‘unhedged’ currencies, the research firm’s updated analysis has suggested 1%.

Companies with large exposure to currencies such as EUR or GBP are likely to suffer on account of negative exposure this quarter, according to Piper. As a result, the foreign exchange benefits for the 2nd quarter of 2010 are likely to remain modest at best.

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