UK Plc Is Buying Longer Currency Hedges After Pound’s Surge
- Average hedge length rises to near 6 months, says MillTechFX
- Geopolitical uncertainty seen driving volatility, survey finds
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British companies are locking in currency hedges for longer, driven by the pound’s surge and concerns that global geopolitical uncertainty will spur more volatility.
The average hedge length has increased to nearly six months, up from less than four months last year, foreign-exchange platform MillTechFX said in a report on Thursday. UK firms are seeking longer-term protection against dramatic currency swings, its survey of 250 chief financial officers and treasurers found.