Low Dollar Hedges Leave Currency Vulnerable -- Market Talk
Dow Jones2026/08/10 13:071307 GMT - Investor protection against the risk of the dollar falling appears to have returned to very low levels, ING's Chris Turner says in a note. Some estimates suggest European hedge ratios on U.S. investments, or the proportion of dollar exposure that is insured against fluctuations, have been cut back to their lowest since February 2025. The Iran war and Federal Reserve Chair Kevin Warsh's commitment to price stability have led to dollar optimism this summer, he says. Low levels of dollar hedging before sweeping U.S. tariffs in April 2025 were widely seen as contributing to a sharp dollar selloff. Low dollar hedges support ING's forecast for the euro to rise to $1.18 by year-end from $1.1548 currently, he says. (renae.dyer@wsj.com)
(END) Dow Jones Newswires
August 10, 2026 09:07 ET (13:07 GMT)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Jefferies lowers SEA target price to $142
Zenix Robotics Invests 5.08 Billion Won to Expand Production Capacity
Anthropic (ANT.US) targets IPO at trillion-dollar valuation; venture capitalists warn it may signal the peak of the AI market
Venture capitalist Selby warns that Anthropic’s trillion-dollar valuation IPO could signal the peak of the AI market, and the expiration of the lock-up period may trigger a chain reaction of corrections.
Wall Street's "Great Rotation" Underway: AI Trading Fades, Tech Stocks Out of Favor, Capital Flows Shift to Defensive Sectors
Analysts point out that as investors shift their bets from high-risk technology sectors to defensive stocks, the market is currently in a "state of alert".
Crypto prices
More
