Asian currencies set to outperform

The resilience of the yen and other Asian currencies in the face of continued central bank intervention relates to investors’ expectations with regards to a cyclical economic upturn. At the start of the year, an expansion in Japanese activity seemed unthinkable, for example, but economists have since been scurrying back to the drawing board to upgrade their growth prospects. This has been helped by a stabilisation of the financial system with an improvement in banks’ balance sheets and by

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