A recent upswing in emerging-market risk sentiment has benefited a number of Asian currencies. According to BNP Paribas’ early warning signals methodology, the Malaysian ringgit is now in the lowest risk category, while the Indonesian rupiah has also been upgraded.
Carry trades have been popular as volatility has subsided in recent months on a flurry of positive signals: hopes that the US Federal reserve is nearing the end of the tightening cycle; a resilient global economy; the lifting of the US debt ceiling; and easing stress in the banking and financial sector.
Access intelligence that drives action
To unlock this research, enter your email to log in or enquire about access
