Economics
Paying Most Since ’08 on Dollar Hedges Works as Currency Plunges
A clerk counts U.S. dollar banknotes at a currency exchange office in Jakarta.
Photographer: Dimas Ardian/BloombergThis article is for subscribers only.
Anyone wondering why you’d pay the highest prices since 2008 to hedge against declines in the dollar found out last week when the currency slid the most in more than three years.
The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major currencies, slid 2.2 percent last week. The rout came as options on the PowerShares DB US Dollar Index Bullish Fund reached the most since December 2008 relative to those on the SPDR S&P 500 ETF Trust, one-month data compiled by Bloomberg show.