US, UK Firms Lift FX Hedges to 57% as Iran War Volatility Roils Markets
Updated
Updated · Bloomberg · May 27
US, UK Firms Lift FX Hedges to 57% as Iran War Volatility Roils Markets
1 articles · Updated · Bloomberg · May 27
US and UK companies hedged 57% of their foreign-exchange exposure in the first quarter, up from 49% in the prior quarter, according to a MillTech survey.
The increase came as the war in Iran shook global markets, prompting corporate treasurers to use more financial instruments to shield overseas cash flows and earnings.
MillTech said the 57% hedge ratio was the highest since it began surveying corporations in the first quarter of 2024, underscoring how sharply risk management demand has risen.
The shift points to broader caution among multinational firms as geopolitical conflict feeds currency volatility and raises pressure to lock in exchange-rate protection.
As record hedging fails to stop millions in losses, what is the true, unmanaged risk businesses now face?
Beyond market chaos, how is the Iran conflict unleashing a new wave of cyberattacks on Western economies?
With a third of global oil trade choked, are we on the brink of a permanent supply chain and inflation crisis?