Corporate treasurers are turning to FX options and longer-dated derivatives to hedge the impact of US President Donald Trump’s planned tariffs on global trade.
In the run-up to Trump’s inauguration, threats of heavy tariffs on imports from China, Canada, Europe and Mexico led to a sharp rally in the US dollar and a significant pick-up in FX volatility.
The moves set off a rush among firms with internal accounting approval to use FX options to buy protection against a stronger dollar.
“Corporates
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