JPMorgan Sees Jump in Currency Hedging Adding to Dollar Pressure

Foreign investors are likely to increase hedging against currency risk on their dollar-denominated holdings, adding to pressures weighing on the greenback, according to JPMorgan strategists.

Investors with large US equities holdings are trading in currencies that are making new highs against the dollar, strategists Meera Chandan and Arindam Sandilya wrote in a note Wednesday. That can drive increased hedging against further dollar weakness, they said.