Asian Currencies Are Winning Over Fund Managers
- Dovish Fed expectations, lower oil prices helping sentiment
- De-escalation of trade dispute seen as key for Asia currencies
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Global investors are already warming to emerging-market Asian currencies -- all they want now is a positive sign on trade from Presidents Xi Jinping and Donald Trump.
Slumping oil prices, pro-active central banks and lowered expectations for Federal Reserve rate hikes have renewed the appeal of one of the year’s most beaten down asset classes, according to conversations with fund managers including Amundi SA and Nikko Asset Management Co. A de-escalation of the trade war would set the stage for a sustained Asian FX recovery, they said.