MillTechFX’s latest Corporate Hedging Monitor, which surveys over 250 CFOs, treasurers, and senior finance executives from the US and UK, found a significant jump in foreign exchange hedging activity over the last quarter. UK corporates pushed their hedge ratios up to 78% in early 2025, meaning roughly four out of every five dollars (or pounds) of foreign currency exposure are now covered.
The pain that prompted the pivot
Approximately 75% of surveyed firms reported suffering FX losses due to unhedged positions amid the volatility that’s defined 2025 so far.
The spike in hedging activity during Q2 and Q3 of 2025 lines up with the escalation of geopolitical tensions surrounding the Iran conflict, which has rippled through energy markets and disrupted supply chains. Rising energy prices, a downstream effect of the conflict, have compounded the problem. When oil prices swing, so do the currencies of energy-importing and energy-exporting nations.
What the numbers actually tell us
