'It’s time to buy Asian currencies'
The world’s biggest foreign-exchange traders say it’s time to buy Asian currencies as outflows from the region ebb and the Federal Reserve’s decision to maintain record stimulus helps reverse a four-month slide.
The Bloomberg-JPMorgan Asia Dollar Index has risen 1.4 percent since Aug. 30, set for the best month since September 2012. Investors pumped US$1.4 billion into equity funds in Asian emerging markets in the week ended Sept. 18, the second straight period of inflows, according to EPFR Global data. They pulled US$91.2 million from bond funds that week, compared with US$310.8 million in the previous period.
“The market got ahead of itself in dumping Asian currencies and being risk-averse,” Adam Gilmour, the head of Asia-Pacific foreign-exchange and derivatives sales at Citigroup Inc, the second-largest currency trader, said Sept. 19 from Singapore. “It’s going to be game-on again. People should start getting back into Asian currencies now.” -- Bloomberg