According to the Financial Times, Trump's repeated tariff policies have pushed currency volatility to multi-year highs and boosted demand for foreign exchange hedging products at a time when companies are struggling to adjust to market volatility.
Currency volatility has surged in recent days to levels last seen during the collapse of Silicon Valley Bank and Credit Suisse in March 2023, according to JPMorgan's G7 and Emerging Markets Currency Volatility Index. Executives at banks and multinational companies say the uncertainty surrounding Trump's tariffs has created more demand for foreign exchange hedging products to offset the impact of sudden currency swings on global businesses.
Nathan Venkat Swami, head of Asia-Pacific FX trading at Citigroup, said demand for hedging products had accelerated since the election of Mr. Trump as US president in November because of uncertainty over US trade policy. "Activity slowed in many parts of Asia in February because of the Lunar New Year holiday, but volumes picked up again in March and corporate hedging activity was strong," Mr. Swami said.
Trump's tariff threats have boosted demand for currency hedging
2025-04-17 04:38:17
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