Corporates boost FX hedges as US dollar surges
Banks see more business, but also rising exposures, from corporates’ FX decision-making
Corporate foreign exchange hedging policies are getting a major shot in the arm as companies try to guard against the surging US dollar.
It’s common for corporates to protect themselves against the downside of unexpected currency moves, but now hedging programmes are increasing in both size and duration as the strengthening dollar adds to the confluence of risks threatening their earnings.
So business is booming for banks. Higher volumes, as well as improved margins and spreads, have resulted
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