US Election Risk Drives Dollar Hedging Costs to 18-Month High
- One-month options contract now captures the vote on Nov. 5
- Traders bullish on dollar as confidence on big Fed cut falters
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Traders are rushing to hedge against swings in the US dollar as a presidential election that remains too close to call approaches.
The cost of one-month option contracts tied to the Bloomberg Dollar Spot Index — which for the first time capture the Nov. 5 vote — jumped the most in two years on Friday, to the highest since March 2023.