Euro Cuts Profit as Nobel Laureate Sees Rally Unwind

The euro’s steepest three-month rally against the U.S. dollar in seven years is sapping the earnings of exporters in the 16-country region and delaying its recovery.

That’s why Deutsche Bank AG, UBS AG and Barclays Capital, the largest currency traders, are urging clients to sell the euro, which strengthened 11.8 percent from Feb. 27 to close at $1.4158 on May 29, the sharpest rise since gaining a record 13.7 percent in 2002’s second quarter. Exporters from Adidas AG to Koenig & Bauer AG, the world’s second-largest sportswear maker and No. 3 printing-press manufacturer, say they are earning less overseas as a result.


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