Bank for International Settlements: The dollar hedging ratio is still quite low, but as US interest rates fall, this ratio is likely to pick up; interest rates rose after the COVID-19 pandemic, causing investors to abandon dollar hedging before US tariffs were implemented in April; non-US investors still face the risk of potential dollar losses.

Bank for International Settlements: The dollar hedging ratio is still quite low, but as US interest rates fall, this ratio is likely to pick up; interest rates rose after the COVID-19 pandemic, causing investors to abandon dollar hedging before US tariffs were implemented in April; non-US investors still face the risk of potential dollar losses.