The strong dollar challenge

The strength of the Australian dollar this year has put many of Australia’s export-focused firms under pressure, but so far there has been little impact on corporate hedging strategies. Roger Hogan reports

If you want an example of a cool customer, talk to Damian Gaylor, corporate treasurerof Parkville, Victoria-based pharmaceutical and biotechnology group CSL. Hiscompany’s share price has fallen 37.5% this year – from A$21.70 toA$13.50 – for the most part due to concerns about corporate strategy; butopen exposures to the US dollar and Swiss franc haven’t helped. Yet Gaylorisn’t scrambling to change the firm’s hedging policy.

In May, the company warned that its second-half profit would be lower