Thai sovereign entities to hedge out legacy yen exposures as baht strengthens
The recent strengthening of the baht versus the yen will drive a spike in foreign exchange hedging as Thai sovereign and quasi-sovereign entities look to hedge out their legacy Japanese currency denominated loan exposures, according to Standard Chartered.
The baht was second only to the Philippine peso as the best performing Asian currency last year, and this trend has continued in 2013 with it rising another 18% against the yen since the start of January. One baht is now worth 3.42 yen compared
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