Volatility Traps Threaten Asia Currency Traders This Summer
- Indonesian rupiah and Indian rupee may be vulnerable to swings
- Analysts warn of volatility complacency amid thin liquidity
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Asia investors hunkering down for a lull in currency market volatility this summer may be in for a shock.
Two of the region’s highest-yielding currencies -- Indonesia’s rupiah and India’s rupee -- look particularly vulnerable in July and August, when liquidity is traditionally thinner as traders take their holidays, according to analysts. Surging coronavirus infections, billion dollar stimulus measures and controversial debt monetization plans threaten to reignite volatility.