BNY reports surge in dollar hedging as investors seek protection against currency volatility
BNY clients have boosted dollar hedging to the highest level since late 2023. Investors are shielding portfolios from a weaker greenback while holding assets.
Insights:
Clients of The Bank of New York Mellon Corporation have increased the hedging of their exposure to the currency of the US 
US to a level almost 20% greater than what is required to match changes in the value of their underlying bond and equity holdings. This material rise in currency-hedging demand at the major custodian reflects a significant shift in institutional behavior that has implications for risk management and hedging flows across global currency markets.
US to a level almost 20% greater than what is required to match changes in the value of their underlying bond and equity holdings. This material rise in currency-hedging demand at the major custodian reflects a significant shift in institutional behavior that has implications for risk management and hedging flows across global currency markets.
