The market knew it would be ugly. Now, it's become clear just how much havoc the strong dollar is wreaking on corporate America.
In the first three months of the year, companies in North America lost nearly $29 billion because of currency swings, according to FiREapps, a company that advises businesses on managing their currency exposure.
It's not just the strong dollar, however. A pickup in currency volatility around the globe is costing corporations everywhere.
If you add losses European companies faced from currency swings, most notably the Russian ruble's dramatic plunge, companies lost $31 billion in the quarter. The drag on North American and European profits was 57 percent greater than last quarter's impact and four times as much as the same quarter a year ago.
"As long as economies around the world remain weak and central banks there see intervention as a successful stimulus tool, then we should expect to see continued currency volatility," according to FiREapps Q1 2015 Currency Impact Report.
Just last week South Korea and New Zealand surprised the markets by cutting interest rates to fight slow growth and low inflation.
For North American companies, the main culprit is the euro, with 142 of the 279 companies hit by such losses blaming the currency's decline. The euro plunged 11 percent during the quarter, dragging down American company sales more than they did during the height of the European debt crisis.
"Here we are less than three years later and for most major U.S. dollar currency pairs, volatility has surpassed the height of the euro crisis – as have the negative impacts reported by U.S.-based multinationals," according to FiREapps.
"The variety of currency culprits reported by corporates in North America and Europe reflects the complexity of currency risk management for multinational corporations," says FiREapps.