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Asian Currency Volatility Drops Amid Emerging-Market Tempest

  • Oanda’s Innes says it’s ‘the calm before the storm’ in Asia
  • Volatility could rise depending on trade tension outcome: ANZ
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Don’t be fooled as Asian currency swings seemed to be impervious amid an uptick in volatility in its global emerging-market peers this month.

Cushioned by current-account surpluses across most of the region and by China’s pledge this month of a stable yuan, the average three-month implied volatility for Asian currencies dropped 23 basis points this month, according to data compiled by Bloomberg. That contrasts with volatility for the wider emerging-market universe, which has climbed 4 basis points amid the twists and turns of the U.S.-China trade fight.