CORPORATES LEFT AT THE SHARP END OF CURRENCY RISK: CORPORATE HEDGING

摘要

The disjointed global economic recovery has led to high levels of currency volatility over the past 18 months; at its low point, the euro shed more than 20% of its value against the dollar and, in a single week in June, sterling rallied by nearly 4 % against the euro, only to see those gains almost entirely eradicated 10 days later.rnWith economic conditions remaining unstable around the world, it is not uncommon to see exchange rates move by more than 1.5% in a single day - considerably more for riskier currencies.