Australian miners embrace options to hedge currency fall
Burnt by over-hedging 15 years ago, Australia's mining industry is returning to options strategies after a 17% fall in the Australian dollar
After a 15-year break Australian miners have started to hedge their currency exposure using options structures in response to a prolonged fall in the value of the Australian currency versus the US dollar.
For the past decade-and-a-half, the mining industry has shied away from large-scale foreign exchange hedging mindful of losses sustained when they last implemented structured derivative strategies and the US dollar moved against them.
But with the value of the Australian dollar falling from 0
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