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2025-09-17 13:02:16
[Foreign investors in US assets are eager to hedge against dollar volatility risks] According to the Financial Times, foreign investors in US assets are rushing to hedge their dollar exposure. This is a sign of growing concern about the impact of Trump's policy agenda on the world's leading currency. Deutsche Bank's analysis shows that since Trump was elected last November, the scale of US bond and stock investments that have been hedged for foreign exchange risks has exceeded unhedged positions, the first time in four years. "Foreigners may have resumed buying US assets, but they don't want to take on exchange rate risk at the same time," said Deutsche Bank strategist George Saravelos. He added that these investors "are withdrawing their dollar exposure at an unprecedented rate." This behavior helps explain an apparent contradiction in the US market since Trump's "Liberation Day" tariff announcement in April triggered a sharp sell-off: why Wall Street stocks have achieved a spectacular rebound, but the dollar has not rebounded.
