FX round up: The new sub-prime?

The huge losses being reported by corporates from emerging markets around the world suggest that not all is as rosy in FX as might have been reported.

Although optimism remains high that the FX market can continue its overall strong performance of recent years, a few doubts are starting to creep in. Much has been made of the acceptance of FX as an asset class. However, the same was once said of the sub-prime mortgage sector, and nobody needs to be reminded how fallacious that was.

The huge losses being reported by corporates from emerging markets around the world suggest that not all is as rosy in FX as might have been reported.

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