Investors reallocating: A trader works on the floor at the New York Stock Exchange. The US dollar is down 10% for the year and 6.5% since Trump’s so-called Liberation Day at the start of April. — Reuters
NEW YORK: Overseas asset managers and pensions are adding protection against a weakening dollar, concerned about the US currency’s diminishing ability to diversify their US equity portfolios.
Because such stock funds carry built-in dollar exposure, investors with other home currencies that had not neutralised the foreign-exchange (forex) risk were cushioned when the dollar was strong if Wall Street performed badly.
