According to currency strategists at Deutsche Bank, this creates an opportunity for the same kinds of convergence trades that preceded European currency union û as countries move towards adopting a single currency unit, and therefore common interest-rate policy, investors can profit from betting that today's differences in yield will erode over time.
This tendency is driven by an increasing focus among Asian economies to tie their currencies to trade-weighted baskets in the hope of keeping their exports cheap. Four of the region's currencies are already officially...
¬ Haymarket Media Limited. All rights reserved.
