State Street: U.S. investors reduce overseas hedges, putting pressure on the dollar

State Street Corporation stated that the main reason for the decline of the dollar earlier this year was due to U.S. investors reducing foreign exchange hedging for overseas investments, rather than global investors increasing their hedging ratio for U.S. portfolios. "The more pronounced activity comes from U.S. domestic investors adjusting their overseas hedging ratios," said Chris Pizzotti, Head of Global Foreign Exchange Sales and Trading at State Street Markets, during a foreign exchange market structure meeting at the New York Federal Reserve Bank on Wednesday. (Sina Finance)