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    Rates movements boost FX net investment hedging

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    Corporate foreign exchange structurers had a tough time post-Covid. Developed-market central banks had all cut rates in response to the pandemic, meaning interest rate differentials were slender.

    For corporates domiciled in those low-rate countries, hedging their investments in foreign subsidiaries in higher interest rate countries would come at a cost, making it undesirable for treasurers.

    But with US, EU and UK rates now higher since 2022, corporates in those countries now have more opportunity

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