Market News
Dollar hedging frenzy fades, bringing relief to greenback - REUTERS
By Alun John and Naomi Rovnick
Summary
- Investor hedging of dollar exposure has slowed, traders say
- Development supports case for dollar recovery
- BNY client data shows dollar hedging levels above average but far from extreme
LONDON, Nov 21 (Reuters) - Just months after a U.S. tariff shock whacked the dollar, a rush by overseas investors to protect U.S. holdings from the sliding currency has slowed sharply - a vote of confidence that's helping the greenback recover from its worst rout in years.
While analysts say investor hedging is higher than it has been historically, such activity has slowed from the period immediately after the April 2 "Liberation Day", when U.S. President Donald Trump announced sweeping trade tariffs.
