MARKET NEWS
Surging dollar spurs jump in corporate FX hedging - REUTERS
By Saqib Iqbal Ahmed and Laura Matthews
Summary
- Corporate treasurers are increasing efforts to hedge against the strengthening U.S. dollar
- Dollar up 7% since September lows, is near two-year highs
- Recent U.S. tariff headlines contributed to dollar rallies and increased market volatility
NEW YORK, Feb 6 (Reuters) - Corporate treasurers are ramping up efforts to guard company earnings against more dollar strength, a move that some analysts said points to increased conviction that President Donald Trump's tariff plans will help keep the U.S. currency higher for longer.
The U.S. dollar index (.DXY) is about 7% above its September lows, hovering close to a two-year high reached in January as investors bought the buck on expectations it would benefit from sturdy U.S. economic growth and Trump's protectionist trade policies.
