DBS CEO Advises Hedging Against US Dollar Exposure Amid Market Volatility
DBS Group CEO Tan Su Shan advised investors to hedge against US dollar exposure, citing low Asian currency funding costs and undervalued exchange rates. This guidance comes as DBS announces its renminbi clearing capability outside China.
洞察:
In a strategic move to address currency risk management, DBS Group Holdings Ltd Chief Executive Tan Su Shan tan su shan has advised investors with substantial US dollar holdings to consider hedging strategies. Speaking at DBS Private Bank's 2026 first-half market outlook event on January 13, 2026, Tan highlighted the favorable conditions in Asian currency markets, including low funding costs and undervalued regional exchange rates, as key reasons for reducing US dollar concentration risk.
Tan noted that the Singapore overnight rate average (SORA) currently ranges between 1% and 1.3%, making funding costs in Asian currencies particularly attractive. "While the US dollar remains the currency of choice for many investors, the concentration risk and expected volatility in 2026 make hedging a prudent approach," she stated. This advice underscores the bank's strategic positioning as DBS becomes the first Singapore bank capable of clearing renminbi outside of China, a significant step in facilitating regional currency diversification.
