[State Street: U.S. Investors Cutting Overseas Hedges Weighs on the Dollar] According to a report by Jinse Finance, State Street Group stated that the primary reason for the dollar's decline earlier this year was U.S. investors reducing foreign exchange hedges on overseas investments, rather than global investors increasing hedge ratios on U.S. portfolios. 'The more noticeable activity comes from domestic U.S. investors adjusting their overseas hedge ratios,' Chris Pizzotti, Global Head of FX Sales and Trading at State Street Markets, said Wednesday at the Federal Reserve Bank of New York's FX Market Structure Conference. 'We estimate that domestic U.S. investors have halved their hedge ratios, which has effectively contributed to the weakening of the dollar. The uncertainty brought by Liberation Day still persists, naturally sparking discussions about de-risking.'