Euro weakness drives Asian exporters to pay for protection

David Naville, an FX structurer at Barclays Capital, talks to FinanceAsia about the challenges facing Asian companies exporting to Europe.

The euro’s recent wild ride has left many Asian exporters with little choice but to buy protection in the form of put options. But David Naville, director of foreign exchange structuring at Barclays Capital, explained to FinanceAsia recently that there are some simple structures that can help to offset the cost of protection.

The euro has looked dangerously weak at times this year. How has this affected Asian companies trying to hedge their euro earnings
The second quarter of 2010 was really at an extreme, from a directional and dynamics point of view. The euro, which moved somewhat steadily upwards during the past decade -- apart from the second half of 2008 --...

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