Microsoft announced it was cutting its fourth-quarter profit and revenue forecasts, due to a strengthening dollar.

Having recently gained 14% over a plethora of currencies due to the hawkish Federal Reserve and heightened geopolitical tensions, a strengthening dollar has it several companies’ warning of hits to their bottom lines. Companies from Coca-Cola to Procter and Gamble have had to downgrade expectations for the rest of the year.

Typically a strengthening dollar impacts the sprawling operations of massive global companies who have to convert significant revenues from weaker foreign currencies into strong dollars.

Steve Koenig, managing director at SMBC Nikko Securities said, “Software companies including Microsoft have significant operations outside the U.S. and I think Microsoft is being prudent here to get ahead of (market) expectations and be transparent around currency impacts.”

Microsoft lowered revenue forecasts for all three of its segments, Windows products, cloud services, and personal computing, due to it receiving about half its revenue from outside the United States. Many companies have increased hedging activity in an effort to counter the effects of shifting currency values.

Microsoft said it expects quarterly revenue to be between $51.94 billion and $52.74 billion, down from its prior forecast of $52.40 billion to $53.20 billion. The profit view was cut to between $2.24 and $2.32 per share from a prior forecast of between $2.28 and $2.35 per share.

Analysts are forecasting earnings of $2.33 per share on revenue of $52.87 billion.

In April Microsoft forecast double-digit revenue growth for the next fiscal year, based upon demand for its office software and cloud services as reopening economies and businesses try to negotiate the reopening by allowing employees to partly work from home over computer networks.

Shares of the Redmond, Washington-based company dropped 2.3% to $266.1.