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2025-12-18 04:17:33
State Street stated that the dollar's decline earlier this year was primarily due to US investors reducing their foreign exchange hedging of overseas investments, rather than global investors increasing their hedging of US portfolios. Chris Pizzotti, global head of foreign exchange sales and trading at State Street Markets, said on Wednesday at the Federal Reserve Bank of New York's Foreign Exchange Market Structure Conference that "more noticeable activity comes from US domestic investors adjusting their overseas hedging ratios." He estimated that US domestic investors have halved their hedging ratios, which has actually contributed to the dollar's weakness. Furthermore, the lingering uncertainty surrounding Liberation Day has naturally sparked discussions about de-risking.
