Du, Wenxin; Huber, Amy W. - National Bureau of Economic Research - 2024
comprehensive estimate of foreign investors' U.S. dollar (USD) security holdings and currency hedging practices. We document four … raised their USD hedge ratio by an average of 15 percentage points, despite higher hedging costs implied by large and … persistent deviations from covered interest-rate parity. The total FX hedging demand from these sector reached $2 trillion in …