Watching the dollar's move and what it means for offshore

It's interesting to see the $USDX pushing up again today, trading around 25.57. With the recent inflation prints, the market seems to be really pricing in a more hawkish Fed for longer. This strength in the dollar naturally makes me think about its implications for clients with significant offshore holdings. While the immediate focus is often on rate differentials, the administrative burden and FX hedging costs can start to add up quickly for those holding foreign currency assets or liabilities if the dollar continues its climb. Not necessarily a major shift in strategy, but definitely something to keep an eye on when advising on account structuring and multi-currency considerations. For those looking to diversify, a strong dollar often makes non-USD denominated assets look cheaper, but then you're exposed to the flip side of the FX. Just food for thought for anyone in the space.