US Dollar Is Still the Dominant Currency, Temasek CEO Says

Currency Exposure and Hedging Strategies - The company has a significant exposure to the Singapore dollar, with 50% of its portfolio in this currency, which experienced a fluctuation of approximately 5-6% during the second quarter of last year [1] - The dollar has seen a year-on-year decline of about 7%, although it has recently increased slightly, indicating its role as a safe haven currency during times of risk [2] - The company has implemented hedging strategies for its dollar-denominated portfolio, but the costs of hedging have risen to around 2.5-2.6%, making it less viable for long-term strategies [3] Investment Strategy and Market Outlook - Current hedging costs are deemed impractical for long-term investments, leading the company to adopt natural hedges by investing in assets expected to outpace dollar depreciation [4] - Despite fluctuations, the U.S. dollar remains the global reserve currency and a safe haven, influencing the company's decision to continue investing in U.S. dollar-denominated assets [4][5] - The U.S. Treasury Department's policy supports a strong dollar, which aligns with the company's investment strategy, indicating no changes in their approach [5]