Currencies
Dollar Fears Grow as Traders Increase Hedges to Five-Year High
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Demand for hedging against potential dollar declines has jumped to a five-year high as the Trump administration’s tariff policy threatens to sap US economic exceptionalism and undermine the greenback.
An index measuring three-month risk reversals — or the spread between call and put options — on the dollar against 12 of its major peers has dropped to the lowest level since the depth of the global pandemic in March 2020, according to data compiled by Bloomberg.