Global Investors Cut Back Dollar Hedging, State Street Says

Global investors have reduced protection against a weaker dollar, countering expectations from earlier this year that an increase in hedging would drag the currency down.

Data compiled by State Street Markets, a division of one of the world’s biggest money custodians, shows that non-US investors in American equities have cut their hedge ratio to 21.6%, down 2 percentage points from May. It’s roughly back to levels in early April, before tariff shocks roiled stock markets and the greenback.