Stagnant forex markets in the US and Japan, and the push for a single currency in Europe, will force banks to take a keener interest in the exotic currencies of the Pacific Rim. “G-10 currencies are over-researched and over-broked and it is increasingly difficult for corporates and investors to be involved in them profitably,” says Avinash Persaud, head of currency research at JP Morgan in London. “Asian currencies have for some time become increasingly important but I think 1996 will be their year of full emergence,” he says.
The Malaysian ringgit will be the year’s star among Asia’s exotic currencies, largely as a result of the US-Malaysian interest rate differential.
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