This autumn, as the global economy grappled with the confluence of inflation, geopolitical uncertainty, and ongoing side effects of the pandemic, the U.S. dollar surged to a 20-year high. Over the past year, it has strengthened against the currencies of most geographies across the globe. The dollar did experience a period of weakness in the post-vaccine environment, as investors sought to take on risk, but 2022 saw an abrupt reversal in that approach.

Relative GDP growth, haven flows, and central bank activity have all played into the dollar's strength. For corporations looking to mitigate their foreign exchange (FX) risk, a number of prevalent hedging themes have emerged.