
Under the risk of the US election, the cost of hedging the US dollar has risen to a new 18-month high

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As the US presidential election approaches, the cost of hedging the US dollar has risen to a 18-month high. The price of a one-month option contract for the Bloomberg US Dollar Spot Index has seen the largest increase in two years, reflecting traders' concerns about US dollar volatility. Opinion polls show that Democratic candidate Harris and Republican candidate Trump have similar levels of support, leading traders to weigh the impact of their economic policies on the US dollar. Despite expectations of a reduced interest rate cut by the Federal Reserve, option traders' optimism towards the US dollar is increasing
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