Overvalued Euro good for European companies

The currency has breached $1.60 in July, leading many observers to assert that it is overvalued. Given the continued rise in commodity prices de Fonclaire, manager of the £372m Jupiter European Special Situations fund, outlined how European firms may actually have an advantage over those in other regions. Most commodities are dollar denominated, meaning European companies can benefit from a favourable conversion rate. However, he explained that those companies selling their products internationally may fare worse. He said: "For companies that have been able to charge a premium bec...