Most Mid-Size Companies Now Protect Against Currency Swings Amid Market Turmoil

A new survey reveals that 88% of medium-sized companies in North America and Europe are now protecting themselves against currency fluctuations, up from 81% last year. The increase comes as market volatility and rising geopolitical tensions create greater financial risks for businesses.

LONDON – A growing number of medium-sized businesses across North America and Europe are taking steps to shield themselves from unpredictable currency swings, according to a new industry survey released Tuesday.

The study by software company MillTechFX found that 88% of companies with market values between $50 million and $1 billion now use financial tools to protect against currency risks – a jump from 81% who did so just one year ago.

Researchers questioned approximately 750 financial decision-makers at companies throughout North America, Europe and the United Kingdom. Among businesses that don’t currently use these protective measures, nearly two-thirds indicated they’re thinking about starting given today’s unpredictable market conditions.

Currency markets have become increasingly unstable over the past year, largely due to rapid changes in U.S. trade policies and foreign relations under President Donald Trump’s “America First” approach. These developments have raised questions about the dollar’s traditional role as a safe investment, with the currency dropping almost 11% against other major currencies since Trump returned to office in January 2025.

Businesses typically use various financial instruments to guard against exchange rate fluctuations that can either help or hurt the value of their transactions and overseas operations.

The MillTechFX study revealed that 62% of survey participants said currency market instability was harming their operations, with 25% describing the negative effects as “very significant.” North American companies reported the highest impact, with 35% experiencing very significant problems and 69% seeing overall negative effects.

The expense of obtaining this financial protection has also climbed substantially, increasing by an average of 67%, the research showed.

“Corporates are reassessing how much FX risk they are willing to carry, balancing the impact of market uncertainty against rising hedging costs. Many are responding by extending hedge tenors to lock in greater certainty while maintaining flexibility through balanced hedge ratios,” said Eric Huttman, CEO of MillTech.

Looking ahead, 62% of those surveyed indicated plans to extend the length of their protective financial arrangements, while only 11% said they would shorten them.

The research also identified obstacles preventing more companies from adopting these protective strategies. In North America, 83% of businesses not currently using currency protection cited complex infrastructure requirements as a barrier, while 67% of European companies said they believed their money could be better invested elsewhere.