Australia Eases Capital Gains Tax Reforms to Support Small Businesses and Startups 
Trump Questions USMCA Renewal as Trade Talks Continue 
Dollar Surges After Fed Holds Rates Steady, Signals Potential Tightening Ahead 
Asian Stocks Surge as Oil Prices Fall and Strong US Dollar Weighs on Markets 
Asian Currencies Steady as Dollar Holds Firm Ahead of Fed Decision and US-Iran Deal Details 
Fed Chair Kevin Warsh Signals Policy Overhaul as Hawkish Rate Outlook Rattles Markets 
Dollar Hits One-Month High as Hawkish Fed Outlook Boosts Greenback 
Italy’s Economy Outpaces Eurozone Peers as Investment Spending Fuels Growth 
US Stock Futures Slip After Wall Street Rally Fueled by US-Iran Deal and Chipmaker Surge 
China’s AI Manufacturing Boom Masks Weak Consumer Economy, Citi Says 
Oil Prices Steady as U.S.-Iran Truce Uncertainty and Middle East Tensions Keep Markets on Edge 
Canada, British Columbia Launch $5 Billion Infrastructure Partnership to Boost Housing, Transit, and Healthcare 
Russia Stocks End Flat as MOEX Index Hits New 52-Week Low; Gold Falls and Oil Mixed 
BOJ Signals More Rate Hikes as Inflation Risks Rise Amid Energy Price Pressures 
Gold Prices Rebound on U.S.-Iran Peace Deal Optimism Despite Fed Rate Hike Signals 
Gold Prices Slide as Hawkish Fed and Strong Dollar Weigh on Bullion 
Japan Inflation Stays Below BOJ Target Despite Rate Hike and Rising Energy Cost Risks 
Australia’s second-largest pension fund, Australian Retirement Trust (ART), has announced it is reducing its exposure to the U.S. dollar by increasing currency hedging, as global investors reassess their U.S. allocations amid falling interest rates and heightened market volatility. The move reflects growing expectations that the U.S. dollar may weaken in the coming year as monetary policy diverges across major economies.
Andrew Fisher, ART’s general manager of total portfolio management and resilience, said the prospect of U.S. interest rate cuts in contrast with potential rate hikes in countries such as Japan and Australia is likely to put downward pressure on the greenback. Financial markets are currently pricing in around 50 basis points of U.S. rate cuts in 2026, while rates are expected to rise in Japan and Australia and remain largely stable in Europe.
ART manages approximately A$353 billion in assets, making it the second-largest fund in Australia’s A$4.5 trillion superannuation system. Fisher emphasized that the fund is not reducing its exposure to U.S. equities, which total about A$53 billion, but is instead adjusting its currency strategy to better manage foreign exchange risk.
By increasing currency hedging on U.S. equity holdings, ART aims to reduce the impact of a potential decline in the U.S. dollar. Historically, many pension funds kept U.S. investments largely unhedged, as the dollar often strengthened during periods of market stress, providing a natural buffer. However, Fisher noted that this dynamic may be changing as U.S. policy priorities increasingly favor a weaker dollar to improve competitiveness.
ART plans to rebalance its global currency exposure by hedging more of its U.S. assets while leaving other international holdings, such as Japanese equities, more fully unhedged. This approach is designed to create a more balanced portfolio in an environment of shifting interest rates and geopolitical uncertainty.
The U.S. dollar, which recently traded near a six-week high, has softened against safe-haven currencies like the Japanese yen and Swiss franc following renewed tariff threats by U.S. President Donald Trump. These developments have added to expectations of continued volatility in currency markets, reinforcing ART’s decision to adjust its hedging strategy.
