Donald Trump’s on-off tariffs have pushed currency volatility to multiyear highs and boosted demand for foreign exchange hedging products as companies struggle to adjust to market swings.
Currency volatility has surged in recent days to levels last reached during the collapse of Silicon Valley Bank and Credit Suisse in March 2023, according to JPMorgan’s G7 and emerging market currency volatility indices.
The uncertainty around Trump’s tariffs has created more demand for FX hedging products to offset sudden fluctuations in exchange rates that are hitting businesses with global operations, according to banks and executives at multinational companies.