The dollar volatility hedge costs hit a year low, traders downplay geopolitical impacts.

According to the Zhitong Financial APP, the cost of hedging against US dollar volatility has dropped to its lowest level this year. This indicates that although there is still uncertainty about the outlook for Federal Reserve policy and tensions in the Middle East have escalated again, traders currently believe that the possibility of a major catalyst that could significantly disrupt the world's major reserve currencies in the short term is low.