Aussie dollar decline puts FX hedging strategies in the spotlight

The rapid slide of the Australian dollar has refocused attention on currency risk by local firms

australia-fundraising

When the Australian dollar broke through parity with the US dollar in 2011 there was little appetite for hedging away currency risk by Aussie firms concerned this would also have limited any upside potential. Instead, many institutional investors used the new-found purchasing power of the AUD to increase their exposure to offshore assets (see chart 1), which was one way for particularly large investment vehicles to get around Australia's limited pool of assets. At the same time, the strength of

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here