Making the case for Asian currencies

The past few weeks have seen heavy volatility in forex markets, reflecting a combination of typical seasonality and increasing concerns about the global economy, with the well-worn phrase ‘sell in May and go away’ much in use.

Faced with a string of poor US data, investors have adopted a more defensive stance towards risk, reducing exposures in high-beta asset markets such as commodities, equities, credit and some higher-yielding currencies. Increasing signs of some degree of slowdown in China