FX Week

Volkswagen steps up currency hedging

VW has said it will now hedge two thirds of its currency exposure, in a strategic reversal for the company that had previously only hedged up to 40% of its e5 billion net currency exposure. Its gross currency exposure is more than e10 billion annually, but half of that is hedged ‘naturally’ by producing cars locally, for example in Brazil, Mexico and China.

The turnaround may have been prompted by this year’s first-half results, in which the company’s profits suffered largely due to adverse e