US dollar assets account for 37%, US dollar depreciation is expected to bring back the Temasek portfolio

From April last year to the end of March this year, the US dollar fell by only 0.7%.

In conjunction with Temasek's release of its fiscal year 2025 annual report as of the end of March this year on Wednesday (July 9), Temasek International Chief Financial Officer Fang Jingyi revealed in an interview with Lianhe Zaobao that the proportion of assets in Temasek's investment portfolio is 37%; the potential exposure of the US dollar is about 24%.

She believes that the ratio is moderate, but Temasek will properly match assets and liabilities or hedge currency risks.

The rising doubts about weak U.S. economy have caused the dollar to bear selling pressure this year, which is expected to bring headwinds to Temasek's investment portfolio.

As for the impact on this fiscal year, it depends on the trend of the US dollar at the end of the fiscal year, which is difficult to predict at this stage.

The dollar has fallen more than 6% against the SGD so far this year, with a drop of 4.5% in the second quarter.

Fang Jingyi explained that the deadline for Temasek's fiscal year is at the end of March each year, and the depreciation of the US dollar occurs most of this year (especially the second quarter), so it will not have much impact on Temasek's performance in the last fiscal year.