Yuan and Rupee Top Asian Currencies for 2014

The rupee’s rally against the Singapore dollar, Thai baht and even the Indonesian rupiah, which along with the rupee was severely hit during last year’s volatile selloff of emerging markets, is evidence of investors cherry-picking.

Being long the rupee against other Asian currencies is a top trade for analysts at Citi. Morgan Stanley’s Asia analysts recommend likewise.

Analysts at HSBC reckon north Asian currencies such as Korean won and China’s yuan could outperform the South Asians, but they also like relative value trades that play off the rupee or won against the Thai baht or Indonesian rupiah.

“These relative value trades are a quicker way to express a relative macro view within Asia and how that can impact Asian currencies, than just a specific dollar-centric view,” said Paul Mackel, head of currency strategy at HSBC in Hong Kong.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza