Fears over strong dollar put Asia’s hedgers on edge

Local corporates look to manage US dollar exposures in response to inflation and Fed tapering concerns

Companies in Asia are growing jittery about the effect of inflation and a hawkish Federal Reserve on their US dollar exposures, leading many to seek to strengthen their currency hedges, say dealers.

Deutsche Bank in Singapore reports a 20% to 30% increase in FX hedging activity by clients over the past three months compared with the same period a year ago.

“We see clients who have been sitting on unhedged positions start to take action, particularly as uncertainty increases,” says Serene Chen