FX hedging behind April’s dollar slide – BIS bulletin
Treasury sell-offs not correlated with greenback’s depreciation, authors argue
The weakening of the dollar in the past two months appears to have mainly been the result of non-US investors hedging their portfolios with foreign exchange instruments, the Bank for International Settlements’ latest bulletin argues.
In the bulletin, published on June 20, authors Hyun Song Shin, Philip Wooldridge and Dora Xia investigate the unusual trends following president Donald Trump’s tariff announcement in early April, when US equities, bonds and the dollar fell in unison.
“When the US
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