Companies using different strategies to hedge against strong US dollar

MRT construction site near Taman Tun Dr Ismail in Kuala Lumpur. The Government’s commitment to roll out the MRT Line 2, LRT 3, Pan-Borneo Highway and High-Speed Rail is important for the sustainability of the construction industry.

THE fact that companies are using different strategies to hedge against the strong US dollar indicate they are on close watch for any advantage to be gained in ringgit terms.

“Our export side customers are generally keeping their hedging in shorter tenures while our import side customers are hedging more of their exposure on dips in the US dollar/ringgit exchange rate (so that they pay less in ringgit),” said Hong Leong Bank chief operating officer, global markets, Hor Kwok Wai.