Asset quality trumps hedging cost in volatile currencies

High cost of hedging out forex exposure in volatile currencies is unnecessary due to the correlation between the underlying asset and currency it's denominated in, investors believe

market volatility

Underlying asset quality is a more important consideration than the cost of hedging foreign exchange risk when investors look to deploy cash in economies with volatile currencies, according to Jeffrey Yap, chief investment officer for Hong Kong-based hedge fund Ark One.

Yap was speaking on a panel discussion at the FX Invest Asia conference, held in Hong Kong yesterday, and was responding to a question on the merits of investors hedging out the forex risk for volatile currencies, such as the

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here