Dollar downtrend halts decline in US hedging

The weak US economy and uncertainty over corporate governance in the wake of the Enron and WorldCom accounting scandals were cited as the main factors behind the lack of hedging at the time, but the greenback’s slide has provided a unique opportunity for US firms.

"The weakening dollar really works in favour of US multinational corporates," said Beau Cummins, global head of FX at Bank of America in New York. "Although there are problems with a weaker currency, corporates can now lock-in rates