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The dollar's gain of 25 percent since July
against a basket of major currencies has landed a double whammy
on U.S. companies with big sales abroad. Revenue and earnings
from foreign markets are worth less when translated into
greenbacks, and their costs become relatively less competitive
against rivals producing in countries with declining currencies
.
Fink, in his letter, said he was worried about the implications
of the rising dollar on the U.S. economy overall as company CEOs
became increasingly nervous.
"While the U.S. economy as a whole is not overly exposed to
exports, many of our largest and most influential companies
are," Fink wrote in the letter, which was attached to a
regulatory filing with the Securities and Exchange Commission
Monday.
"We believe that this will lead to an erosion in confidence on
the part of CEOs, with the potential to slow both investment
decisions and future growth in the U.S," he said.
Meanwhile, Fink believed lower oil prices should benefit
economies globally but cautioned there would be volatility as
"high-cost energy production economics are experiencing
headwinds."
He wrote in the letter: "More shocks can be expected as
production decisions and the demand side seek equilibrium, but
ultimately lower energy prices should benefit the global
economy."
(Reporting By Jessica Toonkel; Editing by Ted Botha)
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