The Government Pension Fund of Thailand and Canada’s Alberta Investment Management Corporation are rethinking hedging strategies for their US dollar assets amid high interest rates.
A weaker yen has made Japanese equities more attractive. The investment in the Japan ETF has recorded a 5.3% return as of Wednesday during the holding period since May 19.
The US dollar is currently strong, but economic weakness, minimal rates and a large and rising debt burden could cause it to weaken. How will that affect how asset owners invest?