Herr Ruhnau’s Decision
Although Hree Ruhnau truly expected the dollar to weaken over the coming year, je believed remaining completely uncovered was too risky for Lufthansa. Few would argue this, particularly given the strong upward trend of DM/$ exchange rate as seen in Exhibit2. The dollar had shown a consistent three-year trend of appreciation versus the Deutschemark, and that trend seemed to be accelerating over the most recent year.