US companies swap dollar bonds for euros to reduce financing costs

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US companies swap dollar bonds for euros to reduce financing costs

US companies with operations abroad are taking advantage of lower euro interest rates to reduce their debt financing costs and cushion the impact of higher US interest rates, using a hedging strategy that is expected to expand if the Federal Reserve continues to hold off on interest rate cuts and other central banks fail to do the same, bankers and corporate consultants said, quoted by Reuters.