# Record targets growing demand for currency risk management

- Link: https://www.directorstalkinterviews.com/record-targets-growing-demand-for-currency-risk-management/4121256343
- Published: 2026-07-14T12:49:00+01:00
- Author: Amilia Stone

Record expects global fragmentation to increase demand for active currency management.

Trade disputes, geopolitical tension and changing capital flows are making exchange
rates harder to predict. This raises the risk of relying on passive hedging or maintaining
concentrated exposure to a small number of currencies.

The US dollar remains the world’s main reserve currency, but its long-term position
is under greater scrutiny. Central banks are diversifying reserves, supply chains
are becoming more regional and concerns around US fiscal policy remain important.
These changes could lead to higher currency volatility. That would increase the 
need for specialist hedging and create a broader opportunity set for active currency
strategies.

Large global trade imbalances remain part of the problem. East Asia and Europe continue
to run significant surpluses, while the United States carries much of the corresponding
deficit. This structure has supported the dollar’s role in global finance, but persistent
deficits may weaken confidence if fiscal policy becomes less credible.

US tariffs have increased government revenue, but they have done little to reduce
the overall trade deficit. Some trade has simply moved through other Asian economies.

China’s economic influence has also grown. Its larger share of global income and
continued trade surplus support a more divided global system, with the United States
and China leading competing economic blocs.

Europe may respond by building stronger relationships with countries outside those
two blocs. This could create new trade and investment patterns, with direct consequences
for currencies and cross-border capital flows.

Countries are also trying to reduce their dependence on strategic imports. Europe
and China are investing in renewable energy, while the United States and China are
strengthening domestic control over semiconductors, rare earths and other critical
technologies.

The dollar could weaken if US fiscal conditions deteriorate, policymakers seek a
lower exchange rate or a wider financial shock reduces confidence. It could strengthen
if fiscal discipline improves, geopolitical risk increases demand for safe assets
or technology investment drives stronger productivity growth.

More capital has moved into equities rather than Treasury securities. This has supported
the dollar, but it also makes the currency more exposed to confidence in US corporate
earnings and technology companies.

_**Record plc** (LON:REC) develops bespoke, high-quality, sophisticated solutions
for institutional investors, a unique offering stemming from Record’s knowledge 
and expertise gained from its core currency hedging markets._

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