Fed, yen and yuan boost S-E Asian currencies

A Bloomberg gauge of South-East Asia’s average one-month risk reversals has risen to the highest in nearly five months. — Reuters

Hong Kong: Options traders are positioning for gains in South-East Asian currencies as the US Federal Reserve’s (Fed) anticipated rate cuts along with strength in the yen and yuan boost optimism in the region.

A Bloomberg gauge of South-East Asia’s average one-month risk reversals has risen to the highest in nearly five months. It signals that the premium to hedge or to speculate on South-East Asian currency upside over that period is rising as more investors position for gains.