Global investors are increasing their dollar hedging ratio to the highest level in two years.

As the ceasefire between the United States and Iran weakens the safe-haven demand that previously supported the US dollar, international investors are increasing their efforts to hedge against the falling dollar. Lee Ferridge, a strategist at Rabobank, stated that as of April 10, the global investors' hedge ratio for the US dollar has risen to 63%, the highest level since the same period in 2024. The Bloomberg Dollar Index temporarily fell by 0.2% on Thursday, and is now close to the level of February 27 the day before the outbreak of the war. The index is set to decline for the ninth consecutive trading day, creating the longest streak of declines since 2006. The US dollar, as a traditional safe-haven currency during turbulent times, became the primary beneficiary during the Middle East conflict, achieving its largest monthly gain since July in March. However, as ceasefire negotiations progress, hedge activities are intensifying as well. The bank's data shows that investors are re-adopting the prevalent pre-war bearish view on the US dollar.