Why The World Started Hedging Its US Dollar Exposure

Podcast : Odd Lots (LS 63 · TOP 0.1% what is this? ) Episode : Why The World Started Hedging Its US Dollar Exposure Pub date : 2025-10-23 Get Podcast Transcript → powered by Listen411 - fast audio-to-text and summarization Some economists expected that the dollar would strengthen when the tariffs were imposed. Instead, the opposite happened. The dollar fell sharply and it's been a poor performer all year. Concurrently, it's been a great year for a lot of dollar-denominated assets, like stocks. Even US Treasuries have rallied this year. So what's going on? On this episode, we speak with recurring Odd Lots guest Hyun Song-Shin, Economic Adviser and Head of the Monetary and Economic Department at the Bank for International Settlements. Per his work, the world didn't abandon the US dollar, but it did start hedging exposure to it. We discuss this phenomenon, as well as other risks on the macro landscape. Only Bloomberg.com subscribers can get the Odd Lots newsletter in their inbox — now delivered every weekday — plus unlimited access to the site and app. Subscribe at bloomberg.com/subscriptions/oddlots See omnystudio.com/listener for privacy information. The podcast and artwork embedded on this page are from Bloomberg, which is the property of its owner and not affiliated with or endorsed by Listen Notes, Inc.