Low Dollar Hedges Leave Currency Vulnerable -- Market Talk
Dow Jones2026/08/10 13:071307 GMT - Investor protection against the risk of the dollar falling appears to have returned to very low levels, ING's Chris Turner says in a note. Some estimates suggest European hedge ratios on U.S. investments, or the proportion of dollar exposure that is insured against fluctuations, have been cut back to their lowest since February 2025. The Iran war and Federal Reserve Chair Kevin Warsh's commitment to price stability have led to dollar optimism this summer, he says. Low levels of dollar hedging before sweeping U.S. tariffs in April 2025 were widely seen as contributing to a sharp dollar selloff. Low dollar hedges support ING's forecast for the euro to rise to $1.18 by year-end from $1.1548 currently, he says. (renae.dyer@wsj.com)
(END) Dow Jones Newswires
August 10, 2026 09:07 ET (13:07 GMT)
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