Mastering Currency Hedging: Top Strategies for Developed Market Investors to Protect Portfolios
Currency hedging has emerged as a critical tool for investors navigating the volatile landscape of international markets. By employing financial instruments like forward contracts, FX options, and currency swaps, market participants can lock in exchange rates and mitigate the risks associated with foreign exchange fluctuations.
The strategy is particularly relevant for developed market investors seeking to preserve the value of overseas assets when repatriating gains. As global macroeconomic uncertainty persists, sophisticated hedging techniques are gaining traction among institutional and retail traders alike.