Hedging by Australia’s pension funds set to boost local currency


Providing a shield: A worker near the Opera House in Sydney. Tariff risks and bets that the Federal Reserve will cut interest rates should weaken the greenback. — AFP

SYDNEY: The Australian dollar is set for further gains as the nation’s biggest pension funds have reason to boost hedging of their US assets to shield them from policy uncertainties.

Tariff risks and bets that the Federal Reserve will cut interest rates should weaken the greenback, according to Ray Attrill, head of foreign-exchange strategy at National Australian Bank.

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