Temasek: Weakening US dollar drives up hedging costs, forcing a shift towards natural hedging.

Dilhan Pillay, CEO of Singapore's state-owned investment company Temasek Holdings, said the company was forced to hedge its dollar position this year, as a weakening dollar posed a significant challenge to foreign investors. "Hedge costs have become too high, so I have to consider natural hedging," Pillay noted. This means Temasek must find investments whose net returns are sufficient to cover the associated risks. "Some dollar-denominated assets don't justify my capital allocation there," he said. However, the unique position of the United States remains unchallenged in the short term, as its capital markets continue to attract substantial foreign investment. "Capital rotation isn't easy; that's the reality." (Jinshi)