Why The World Started Hedging Its US Dollar Exposure

Bloomberg•Thursday, October 23, 2025 at 8:00:00 AM

The recent decline of the US dollar has surprised many economists, especially after the imposition of tariffs that were expected to strengthen it. Instead, the dollar has struggled while dollar-denominated assets like stocks and US Treasuries have performed well. This shift raises important questions about the future of the dollar and the strategies investors might adopt to hedge their exposure. In a conversation with Hyun Song-Shin from the Bank for International Settlements, we explore the implications of these trends and what they mean for the global economy.

— Curated by the World Pulse Now AI Editorial System

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