How Currency Investors Are Bracing for a Full-Blown Trade War

  • Threat of retaliatory tariffs has investors assessing risks
  • Some funds seek havens, others hedge bets on global expansion
Institute of International Finance Chief Economist Robin Brooks discusses the dollar and President Trump’s tariffs.(Source: Bloomberg)
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In foreign-exchange markets, investors aren’t waiting to find out if all the tariff threats being thrown around lead to a full-blown trade war.

Some money managers have begun piling into traditional havens like the yen; others are trimming currency exposure altogether; and even those who’re betting not much will come from the row are hedging just in case.