Reuters: Global pension funds pull back on FX hedges as dollar woes ease

"The reversal is easing pressure on the greenback and further undermining the briefly popular narrative that investors were moving away ​from the dollar in a sell America trade. Although comprehensive hedging data are scarce, a similar dynamic appears to be playing out among real-money investors elsewhere, said ​Karl Schamotta, chief market strategist at payments company Corpay in Toronto. "Because long-duration hedging can be expensive and cut into returns, some of ⁠that increase is now being unwound — mostly passively, as firms let hedges roll off without replacement," Schamotta said."

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