Won, Rupiah Stand to Gain Most When Foreign Flows Return to EM
- Korea has the simplest path to winning back equity inflows
- Indonesia’s allure may depend on weakness in the U.S. dollar
This article is for subscribers only.
The Korean won and Indonesia’s rupiah would be the two biggest beneficiaries should foreign-investor flows return to Asia, once the risk event of the U.S. presidential election is out of the way.
That’s according to a Bloomberg study of Z-scores that measure the 12-month rolling sum of portfolio inflows and compares this to the five-year average with currency valuation and economic fundamentals taken into account.