Currency Probes Adding to Volatility Slump, Standard Bank Says
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Regulatory investigations of alleged currency-market collusion are probably contributing to a slump in volatility in major foreign-exchange markets, according to Steven Barrow, Standard Bank Plc's head of Group-of-10 research.
The probes, together with limits on speculative trading in the wake of the global financial crisis, may be damping market reactions to events such as the geopolitical tension in Ukraine, London-based Barrow wrote in an e-mailed note to clients today. That may boost the appeal of trading more-volatile emerging-market currencies, he said.