Goldman's Chambers Sees Currency Hedges Accelerate Dollar's Fall
The dollar is likely to extend its worst start to a year as foreign investors boost their currency hedges, according to Richard Chambers, global head of repo-trading at Goldman Sachs Group.
'We do expect to see higher FX hedge ratios given the heightened volatility,' Chambers, who is also co-head of short macro trading at the bank, said at an event hosted by the International Swaps and Derivatives Association in New York. 'The theme of a weaker dollar, the theme of higher FX hedge ratios, the theme of future purchases of Treasuries in an FX hedge format, we think will become far more commonplace as opposed to where they were maybe 12 months ago.'
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