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In New York, corporate treasurers are stepping up measures to protect company profits against a stronger dollar, reflecting a growing belief that President Trump's trade policies will bolster the U.S. currency. The U.S. dollar index, up 7% since September, nears a two-year high. Speculators are betting heavily on the dollar, with net long positions hitting $35 billion, the highest in almost nine years.

Corporate treasurers, traditionally cautious in their approach, are now acknowledging the potential for a prolonged strong dollar. Paula Comings, head of foreign-exchange sales at U.S. Bank, noted an increasing trend among businesses to hedge against further dollar strength and secure their overseas revenues.

Multinational giants like Apple and Microsoft have already cautioned about the impact of a robust dollar on their financial performance. Market data suggests that corporate hedging activities surged before the U.S. election in preparation for Trump's potential victory.

Eric Huttman, CEO of MillTechFX, highlighted the concerns among smaller North American firms regarding currency values post-election, prompting heightened hedging activities. The recent currency market volatility, fueled by trade threats against Mexico, Canada, and China, reinforced the urgency for companies to shield against currency fluctuations.

Kyle Chapman, FX analyst at Ballinger Group, emphasized the surge in hedging activities across industries amid the increased market uncertainty post-election. He underscored the prevailing view that the strong dollar trend is likely to persist with Trump's tariffs in effect.

Several companies have reported significant negative impacts due to unfavorable currency movements, with adjustments being made to mitigate these challenges. Companies with limited hedging resources face a more significant challenge in adapting to the strong dollar environment.

Amol Dhargalkar, managing partner at Chatham Financial, highlighted increased interest from large companies in reviewing and enhancing their hedging strategies due to concerns about the dollar's strength, a trend now being followed by smaller companies.

Analysts caution that while the current escalation in hedging activity is spurred by tariff-related uncertainties, a full-blown trade conflict could undermine these efforts, posing risks to businesses' cash flows and operational forecasts.