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BofA: More Consistency Than Meets The Eye

ASIA FX

Bank of America note “three optical "anomalies" in Asia FX: 1) year-to-date depreciation seems outsized relative to its key drivers (US rates, China sentiment, energy prices, global equities); 2) volatility dislocations in some currency pairs (INR low, TWD high relative to historical realized levels); 3) risk-reversals at historical lows on average.”

  • “We recommend fading the sell-off in KRW but that aside, the broader Asia FX spot, vol and skew dynamics are more consistent with fundamentals than they first appear.”
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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