By Alun John and Naomi Rovnick LONDON (Reuters) -Just months after a U.S. tariff shock whacked the dollar, a rush by overseas investors to protect U.S. holdings from the sliding currency has slowed sharply - a vote of confidence that's helping the greenback recover from its worst rout in years. While analysts say investor hedging is higher than ​it has been historically, such activity has slowed from the period immediately after the April 2 "Liberation Day", when U.S. President Donald Trump announced swe ...

That pressure suggests that at the very least the currency will struggle to rebound from its roughly 9% slide in 2025, especially with the European Central Bank likely on hold for now. The Bank of Japan is expected to hike as soon as later this year.A chorus of banks including State Street Corp., Deutsche Bank, BNP Paribas SA and Societe Generale SA anticipate the hedging will weigh on the dollar heading into next year.By Mahtani’s estimate, the wave of fresh dollar hedging could ultimately tally about $1 t ...