Temasek: The weakening of the US dollar has caused hedging costs to soar, forcing a shift towards natural hedging.

Odaily News Singapore's state investment company Temasek Holdings CEO Dilhan Pillay stated that this year the company is forced to hedge against the US dollar, as the dollar's weakness poses a significant challenge for foreign investors. “The cost of hedging has become excessively high, so I have to consider natural hedging,” Pillay pointed out, meaning Temasek must look for investments that can sufficiently cover the associated risks with net returns. “Some dollar-denominated assets do not demonstrate that my capital allocation there is justified,” he said. However, the unique position of the US is still not threatened in the short term, as the country’s capital markets continue to attract a substantial inflow of foreign capital. “Capital rotation is not easy, that's the reality.” (Jin10)