By Yantoultra Ngui

SINGAPORE, Jan 13 (Reuters) - DBS Group Chief Executive Tan Su Shan on Monday advised investors with heavy U.S. dollar exposure to consider hedging, saying funding costs ‌in Asian currencies are low and regional exchange rates look ​undervalued.

Speaking at DBS Private Bank's 2026 first-half market ‍outlook event for clients, Tan said ⁠the U.S. ⁠dollar remained the currency of choice for many investors but that ‌concentration risk and volatility ​make hedging prudent.

"If you have too much U.S. dollars, think about hedging," the ⁠CEO of Southeast Asia's ‍biggest ​bank by assets said at the event, according to a transcript of her comments.

"The funding cost ‍of Asian currencies today is very low. If you look at the one-month SORA, it has been between 1% and 1.2% to 1.3%."

SORA, or the Singapore overnight rate average, is ​a ‍key benchmark for Singapore dollar interest rates.

Tan said that borrowing costs in Asian currencies ​are low, making them attractive for investors seeking better returns than those available through funding in U.S. dollars.

She also said China wants to internationalise the renminbi, adding that DBS is the first Singapore bank able to ​clear renminbi outside of China.

Tan said volatility would persist in 2026 as the global economy is reshaped by geopolitics ‍and other forces.