The weak dollar cycle begins, and the hedging window for emerging markets in Asia quietly opens

The cost of protecting against dollar risk exposure in Asia has fallen to its lowest level since April, providing investors with hedging opportunities. The Federal Reserve is expected to continue cutting interest rates, while the easing cycle of various Asian central banks is nearing its end, which may further reduce currency protection costs. Goldman Sachs strategists point out that low hedging costs will enhance attractiveness, especially for capital-exporting economies in North Asia. As expectations of a weaker dollar rise, investors are beginning to protect dollar assets, with inflows into dollar-hedged ETFs surpassing those into non-hedged ETFs for the first time