Hedge simple

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Corporate treasurers have spent much of the past year with their eyes glued to foreign exchange rates. Currency markets have leapt around violently, with the dollar appreciating strongly from the middle of last year. For many firms, this sharp reversal of fortune has had a material effect on company results - with some even reporting millions of dollars in mark-to-market losses on failed hedges.

With volatility expected to remain high in 2009, some companies have begun reassessing their hedging