Currency Hedging Increases Amid Tariffs and Declining U.S. Dollar

Companies are increasingly engaging in currency hedging due to the impact of tariffs and a weakening U.S. dollar, according to a recent survey by MillTech. Bloomberg posted on X that businesses are responding to significant financial losses experienced in the fourth quarter by adopting strategies to mitigate currency risks. The survey highlights a growing trend among firms to protect themselves from volatile exchange rates, which have been exacerbated by ongoing trade tensions and economic uncertainties. As the dollar continues to slide, companies are seeking to safeguard their financial positions through proactive hedging measures.