The pound trading about 0.5 percent from a five-month low versus the dollar comes too late for U.K. companies with large foreign sales that are blaming sterling’s earlier rally for reduced earnings. Today it was WPP Plc’s turn.
The U.K. currency yesterday slid to the least since March after posting its seventh consecutive weekly loss. The decline pared gains amassed in the past 12 months that made sterling the best performer among 10 major currencies tracked by Bloomberg Correlation-Weighted Indexes. That’ll be of little comfort to WPP, the world’s largest advertising company, which said its first-half revenue had been damped by the pound’s broader rally.
This year “looks likely to be another demanding year, as a strong United Kingdom pound and weak faster-growth-market currencies continue to take their toll on our reported results,” London-based WPP said in a statement today.