Many executives had expected the dollar to retreat this year after it shot higher in 2022.
Some are now reviewing their hedging strategies.
Photo: Cfoto/Zuma PressFinance chiefs are anticipating more pain from foreign exchange rates after the U.S. dollar strengthened again this summer and fall, following a historic tear last year.
The U.S. dollar index, which tracks the currency against a basket of others, surged during the third quarter on higher Treasury yields, then skipped to its highest point of the year in October, when it stood 7% above a mid-July trough.
Since then, the index has tumbled 4% from last month’s pinnacle and is on track for its lowest close in months, as Treasury yields soften and investors gain confidence that the Federal Reserve will be cutting interest rates in the foreseeable future.
Organizations:
Zuma Press Finance, U.S ., U.S, Federal Reserve