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Rethinking The Dollar’s 2025 Decline: Hedging, Not Flight

by Artem Sakhbiev, FX Strategist  

The dollar’s early 2025 decline was a reflection of a global rush to hedge accumulated USD exposure, not a mass exodus from US assets. With most hedging now complete, currency moves should again follow fundamentals, setting the stage for a tactical USD rebound in the months ahead.

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