Temasek CEO Discusses Hedging Challenges Amid Weakening Dollar

According to Odaily, Dilhan Pillay, CEO of Singapore's state-owned investment firm Temasek Holdings, has highlighted the challenges posed by the weakening U.S. dollar for foreign investors. This year, the company has been compelled to hedge against the dollar, which has become increasingly costly. Pillay emphasized the need for natural hedging, meaning Temasek must seek investments that can cover associated risks through net earnings. Pillay noted that some dollar-denominated assets do not provide sufficient net returns to justify capital allocation. Despite these challenges, the unique position of the United States remains unthreatened in the short term, as the country's capital markets continue to attract substantial foreign investment. "Capital rotation is not easy, and that's the reality," he stated.