The dollar’s record rally is wreaking havoc on some of the biggest companies in the world this earnings season. Earlier this month, the dollar index hit a 20-year high of 109.29. The euro fell below parity with the greenback for the first time since 2002, and central banks across the world continued to weigh rate hikes to combat record inflation. While the index has pulled back more than 2.6% from its 52-week peak, it is still trading up about nearly 11% this year at around 106.37 as of midday Friday. But even as those gains dissipate, the carnage from the rally is expected to continue to hit some of the highest profile companies with strong overseas businesses as they grapple with foreign exchange headwinds that could cut into profits. Morgan Stanley’s Michelle Weaver said in a note to clients this week that the dollar’s rally presents a headwind to earnings for U.S. companies, which make roughly 30% of sales abroad combined. “Our…
