Goldman Sachs(US:GS) Zhi Tong Cai Jing·2025-09-25 02:56Group 1 - The cost of hedging dollar exposure for Asian investors has dropped to its lowest level since April, averaging 0.7%, indicating a potential opportunity for risk-averse investors [1][2] - The decline in hedging costs is attributed to expectations of continued interest rate cuts by the Federal Reserve, while the easing cycles of Asian central banks are nearing an end [1][4] - There is a growing demand for dollar hedging among Asian investors, particularly in capital-exporting economies in North Asia, due to concerns over a weakening dollar [1][4] Group 2 - The Federal Reserve has recently cut rates by 25 basis points and signaled further policy easing, while other Asian central banks are expected to conclude their easing cycles [4] - The Bloomberg Dollar Spot Index has fallen approximately 8% year-to-date, with institutions like Goldman Sachs predicting continued dollar depreciation [4] - A report from Deutsche Bank indicates that inflows into dollar-hedged ETFs have surpassed those into non-hedged ETFs for the first time in a decade, highlighting the increasing demand for hedging [4]