Dollar distress
Scottish Power has announced a £400 million cash windfall through its currencyhedging programme. Others have not been so lucky – but everyone is nowwaking up to currency trading. By James Ockenden
Hedging currency risk is the exception rather than the rule in the UK – indeed, according to Tony Wilson, director of corporate foreign exchange for global currency trader Travelex, only 5% of UK corporates hedge these risks. But for Scottish Power, a regulated utility with a $6 billion US subsidiary whose shareholders are used to low earnings volatility, covering its exposure to foreign
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