Corporate currency hedging slows as FX volatility slumps

The striking calm in foreign exchange markets in recent months has led some U.S. multinational companies to scale back on guarding against currency gyrations, potentially leaving them vulnerable if volatility rebounds from near five-year lows.

North American companies reported $20.84 billion in negative currency impacts in the fourth quarter of 2018, the most since the since the fourth quarter of 2015, according to corporate treasury and cash management solution provider Kyriba.