88% of Western Firms Hedge FX Risks Amid Market Volatility

A MillTechFX survey shows 88% of mid-sized Western firms now hedge currency risks. Most are extending hedge lengths to manage rising market volatility.

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Nearly 90% of mid-sized companies across North America and Europe are now utilizing currency hedging to manage financial risks amid rising geopolitical uncertainty and market volatility. A recent survey by software provider MillTechFX reveals that 88% of firms in North America, Europe, and the United Kingdom currently hedge their foreign exchange exposure, a notable increase from 81% recorded a year earlier. Among the companies that do not yet hedge, approximately two-thirds are considering the practice due to the current economic climate.

Pedestrians walk through the Financial District near the New York Stock Exchange in New York on December 29, 2023. REUTERS/Eduardo Munoz/File Photo
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