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Archive for October, 2013


Posted On 02  Oct  2013  

Demand grows for currency hedging

The recent sell off in emerging market currencies is leading to more currency hedging among corporate clients as well as portfolio managers according to a report in the FT today by Delphine Strauss (FT, Oct 2, 2013) That currency risks should be at the core of all investment decisions is something new that is shaping the delivery of financial products and managing currency risks for exporters as well as importers. Most emerging market funds focus on equity analysis and very rarely plan for or hedge currencies. Buyers of commodities also don’t have cost effective currency hedging tools. For retail investors currency hedging can be quite expensive and many don’t appreciate the benefits. We believe any any investment with international exposures should start with currency risk at its core and the cost of currency hedging should not be expensive compared with the expected benefits of the hedge. Many currency hedge strategies