temasekwatch

**🔍 Temasek Warns: Stronger Hedging Costs as U.S. Dollar Weakens**

**Singapore**, November 19, 2025 — Temasek Holdings, Singapore’s state-owned investment giant, is sounding the alarm on a growing challenge: hedging against a weakening U.S. dollar is becoming expensive. According to CEO Dilhan Pillay, the firm has had to ramp up its hedging strategies this year — a necessary move, but one that eats into returns.

Pillay emphasized that Temasek is now placing greater importance on **natural hedging** — prioritizing investments whose own earnings can help offset dollar-related risks. Simply holding dollar-denominated assets is no longer enough when those assets don’t generate sufficient returns.

He also acknowledged some tough realities: not all U.S.-based investments justify the capital outlay once the cost of hedging is considered. Still, despite the headwinds, Temasek remains confident in its exposure to the American market. Pillay pointed out that U.S. capital markets continue to attract global investors, and for now, there’s little threat to America’s dominant position.

“Capital rotation is not easy, and that’s the reality,” he said — suggesting that even as Temasek reassesses risk, the firm is unlikely to make sudden sweeps out of U.S. assets.
#DollarRiskAlert #Currency_Analysis #Temasekwatch #GlobalInvestments #FXVolatility

🚨 Temasek Raises Red Flag: Hedging Costs Surge as U.S. Dollar Weakens

Singapore | November 19, 2025 — Temasek Holdings is officially sounding the alarm. With the U.S. dollar slipping, the cost of hedging has shot up — and Singapore’s sovereign investment giant says it’s hitting returns harder than expected.

CEO Dilhan Pillay revealed that Temasek has been forced to increase its hedging activity this year, calling it “necessary, but expensive.” As a result, the firm is now doubling down on natural hedging — choosing investments whose own earnings automatically offset FX risk.

Pillay didn’t sugarcoat it:
👉 Some U.S. investments simply don’t justify the capital once hedging expenses are factored in.
👉 Dollar-denominated assets alone no longer provide sufficient protection.

Still, Temasek isn’t backing away from America. Pillay stressed that U.S. capital markets remain the world’s gravitational center — and that global investors aren’t likely to shift away anytime soon.
“Capital rotation is not easy — that’s the reality,” he said, signaling that while Temasek is reassessing currency risk, a major repositioning is unlikely.

The message is clear:
⚠️ Hedging costs are rising.
⚠️ FX volatility is now a critical threat.
⚠️ And even giants like Temasek are adjusting fast.
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#DollarRiskAlert #FXVolatility #TemasekWatch #GlobalInvestments #CurrencyMoves

*🔍 Temasek Warns: Stronger Hedging Costs as U.S. Dollar Weakens**
**Singapore**, November 19, 2025 — Temasek Holdings, Singapore’s state-owned investment giant, is sounding the alarm on a growing challenge: hedging against a weakening U.S. dollar is becoming expensive. According to CEO Dilhan Pillay, the firm has had to ramp up its hedging strategies this year — a necessary move, but one that eats into returns.
Pillay emphasized that Temasek is now placing greater importance on **natural hedging** — prioritizing investments whose own earnings can help offset dollar-related risks. Simply holding dollar-denominated assets is no longer enough when those assets don’t generate sufficient returns.
He also acknowledged some tough realities: not all U.S.-based investments justify the capital outlay once the cost of hedging is considered. Still, despite the headwinds, Temasek remains confident in its exposure to the American market. Pillay pointed out that U.S. capital markets continue to attract global investors, and for now, there’s little threat to America’s dominant position.
“Capital rotation is not easy, and that’s the reality,” he said — suggesting that even as Temasek reassesses risk, the firm is unlikely to make sudden sweeps out of U.S. assets.
#DollarRiskAlert #currency _Analysis #Temasekwatch #GlobalInvestments #FXVolatility $BTC $SOL $XRP