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The Big Bet for FX Traders Is How Best to Hide From Inflation

  • Higher yields in emerging markets look attractive, Amundi says
  • Goldman eyes Swiss franc and Swedish krona as prices tick up
Updated on

Investors are redrafting their playbooks as they game out just how well different currencies can withstand -- or harness -- the rising tide of global consumer prices.

For the likes of Amundi Pioneer Asset Management and Brandywine Global Investment Management, the answer may lie in higher-yielding emerging markets or big commodity producers that stand to gain from rising prices. Analysts at Goldman Sachs Group Inc. are more focused on mispriced opportunities around the policies of central banks, which may show more willingness to embrace FX appreciation and extend their rate-hiking cycles amid climbing inflation risks. And still others are of a mind to just hide out in the dollar -- the world’s biggest reserve currency and a go-to haven.