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Bank of America: Equity Volatility Hits North Asia FX

ASIA FX

Bank of America note that “the reaction of Asian FX to the war in Ukraine has been uneven. A number of South Asian currencies (MYR and IDR) are benefiting from higher commodity prices and have posted relative outperformance. On the other extreme, technology and risk-sensitive pairs (KRW and TWD) have seen crisis-level equity outflows. Outside immediate risk flow, structural factors such as higher US rates, slowing global growth and geopolitical risks remain headwinds for Taiwan and Korea. We expect relative outperformance of commodity exporters vs tech exporters in the coming quarter.”

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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