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Index/Topics/Dollar Fall 2025

Dollar Fall 2025

The fall of the US dollar in mid-2025 and the subsequent increase in hedging by foreign holders of US assets.

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Jan 21, 2026

How have foreign holders of U.S. assets changed hedging behavior since the dollar’s mid‑2025 fall?

Since the dollar’s mid‑2025 fall, foreign holders of U.S. assets largely retained positions but materially increased the use of FX hedges—principally short‑dated FX swaps and forwards—to blunt further...

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