10:15 - 3.09.2026

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September 3, Fineko/abc.az. Foreign investors' currency hedge ratios on US assets have fallen to 41%, their lowest level since at least 2015, creating significant downside risk for the US dollar if market sentiment shifts.

According to Bloomberg analysis, major institutional investors in Japan, Canada, and Taiwan reduced their dollar hedges due to high derivative costs and temporary currency stability. With over $4.6 trillion in foreign assets under coverage across key markets, even a modest 5 percentage point increase in hedging ratios could trigger roughly $230 billion in automated US dollar sales, threatening to accelerate any potential currency decline.