Indonesian corporate hedging to pick up following election

Importers will increase hedging activity amid greater rupiah volatility


Foreign exchange volatility has increased in the lead-up to the Indonesian presidential election on July 9, with local corporates adopting a cautious approach to hedging reserves, say market participants.

"A Jokowi win with a divided government is likely priced in by the forex markets," says Geoff Kendrick, head of Asia forex and rates strategy at Morgan Stanley in Hong Kong. "In contrast, a Prabowo win may create capital outflows, driving USD/IDR spot above 12,300. We think a Jokowi win would

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Stemming the tide of rising FX settlement risk

As the trading of emerging markets currencies gathers pace and broader uncertainty sweeps across financial markets, CLS is exploring alternative services designed to mitigate settlement risk for the FX market

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