Emerging market (EM) currencies can be difficult to predict and costly to hedge. Moves, when they happen, tend to be sharper and more painful than in G-10 currencies, and traditional hedges are often prohibitively expensive due to interest rate differentials. But a series of sharp and sudden falls in several Asian EM currencies over the past year has caused some corporates to rethink how they manage risk.
Increased volatility for EM currencies first emerged wholesale just over a year ago in May
The week on Risk.net, July 7-13, 2018Receive this by email