Firmer U.S. dollar boosts corporate interest in currency hedging

as informed in Foreign currency earnings of U.S. multinational companies are worth less in dollars when the currency is stronger. "We get more questions about hedging when currency moves," said Roberto Battistuzzi, director of foreign exchange sales at Credit Suisse. Interest rate differences between countries drive hedging costs, and as the Fed raises interest rates it can become more attractive to hedge. Most S&P companies do hedge currency risk, analysts said. The company, which does not plan to change its stance on currency hedging, will try to move more of its costs offshore, to help create a natural hedge, the company said.

Bitcoin has fallen more against the dollar than almost every other currency this year – Quartz

The deepening bitcoin bear market is disappointing for crypto believers, and not just the speculators trying to get rich quick. Some hope that digital assets like bitcoin could give ordinary people in places like Argentina and Venezuela a way to protect their wealth. Bank of England governor Mark Carney refers to digital tokens as "crypto assets" instead of currencies, because their volatility makes them such a poor store of value. Stanford economist John Taylor (paywall) thinks that crypto tokens have potential in countries where policymakers have shipwrecked the domestic economy. It does this using three tokens: basis tokens linked to the greenback, bond tokens that are auctioned by the blockchain, and share tokens.

Bitcoin has fallen more against the dollar than almost every other currency this year – Quartz

U.S. dollar share of global currency reserves fall further - IMF

As it stated in The share of U.S. dollar reserves contracted to its smallest level since reaching 61.24 percent in the fourth quarter of 2013, IMF data released late on Friday showed. Ranked second behind the greenback, the euro's share of global reserves reached 20.39 percent in the fourth quarter, up from 20.15 percent in the fourth quarter. China's share of allocated currency reserves increased for a third straight quarter to 1.39 percent. Sterling's share of currency reserves moved up to 4.68 percent in the first quarter, the biggest since the fourth quarter of 2015, IMF data showed. The yen's share of currency reserves retreated to 4.81 percent from prior quarter's 4.89 percent, which was its biggest since the fourth quarter of 2002.

Gold labours under firm dollar as currency remains close to one-year high

Bengaluru — Gold prices eased for a sixth consecutive session on Friday, hovering near a one-year low hit in the previous session, as the dollar traded close to a one-year high. It dropped from a one-year high on Thursday after US President Donald Trump expressed concern about the currency's strength and the Federal Reserve's interest rate increases. This comes after Fed chairman Jerome Powell in a two-day congressional testimony said the US was on course for years more of steady growth and reaffirmed the expectation for more interest rate rises. Rising US interest rates tend to boost the dollar and make gold more expensive for other holders. Meanwhile, Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund (ETF), rose 0.52% to 798.13 tonnes on Thursday.

Gold labours under firm dollar as currency remains close to one-year high

collected by :Mathio Rix

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