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Currency trading in late 2024 was marked by rising volatility. As a result, the vast majority of companies experienced losses on unhedged foreign exchange (FX) risk, according to a new report from MillTechFX. Based on a survey of 250 senior finance decision-makers at U.S. and UK companies, the “Quarterly Corporate Hedging Monitor–Q4 2024” reveals that economic uncertainty is weighing on treasury and finance teams.
The survey found that fewer than 1 percent of companies hedge no currency risk at all, and half of respondents (50.4%) hedge more than half their risk. Both U.S. and British businesses increased their hedge ratios in the fourth quarter of 2024, but British companies acted much more strongly. While 3.2 percent of respondents from the United States reported hedging between 76 percent and 100 percent of their currency risk, a full 27.1 percent of UK respondents do so.
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