This is how investors protect themselves

Frankfurt The dollar has risen sharply in the past few weeks. Despite the rally, there are clear risks for him from the dispute over the debt ceiling in the US. Congress only approved a slight increase in the limit last week. This means that the conflict has only been postponed until December. If there is no agreement by then, there is a risk of US insolvency – with considerable consequences for the economy. The longer the hangover lasts, the more it could weigh on the dollar and thus catch many investors on the wrong foot.

Anyone who invests in bonds, stocks or gold is almost always exposed to currency risks. In some cases, they have a significant effect on the total return. Investors should therefore keep a few tips in mind, which differ depending on the asset class. Ultimately, the decision about a hedge also depends on the planned holding period and the risk tolerance of the individual.