Sift through the filings of pension funds and insurers around the world and one thing stands out: Some of the biggest holders of U.S. assets have little protection against a weaker dollar, leaving the currency at risk of steeper declines if sentiment suddenly turns.
Across markets including Japan, Canada and Taiwan, these investors hedged just 41% of their foreign-currency exposure as of June 30 — the lowest since at least 2015 — according to calculations using data from six markets where such figures are available.?
While not a complete picture, it offers a glimpse into how the sudden rush last year to hedge against dollar losses triggered by U.S. President Donald Trump’s global tariff rollout has faded as the U.S. currency slowly stabilized.
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