Euro Hammering Asia Spurs Morgan Stanley's Call for 11% Won Drop
- ANZ says correlation between euro and Asian currencies rising
- Taiwan's dollar to drop 8.8% by end 2016, Morgan Stanley says
This article is for subscribers only.
When Morgan Stanley’s top currency strategist visited Asia last week he told clients their fixation with the U.S. Federal Reserve was causing them to overlook risks in Europe.
Asian currencies will weaken next year as declines in the euro, already at a seven-month low on bets the European Central Bank will step up monetary stimulus on Dec. 3, act as a drag on the region’s export-driven economies, Hans Redeker, global head of foreign-exchange strategy, said in an interview in Singapore. Overseas shipments shrank in eight months this year in China, 10 months in South Korea and nine months in Taiwan. In the euro-area, September marked an eighth straight gain from year-earlier levels.