Tactical global investors are anticipating a possible unwinding of the trend of US equities outperforming the rest of the world, amid speculation that the dollar will weaken further.
Former US Federal Reserve chairman Ben Bernanke said emerging-market borrowers were not too badly exposed to the threat of a rising US dollar.
The prospect of US interest rate hikes has spurred fears of a potential sell-off in global bond markets. Asian fixed income markets have been relatively resilient, despite the recent heightened volatility in US and European bond markets, and we continue to be positive on the asset class outlook going forward.
A win for Barack Obama will lead the US dollar to appreciate, says BoA Merrill, while noting the impact of US fiscal tightening on global GDP growth.
Hedging foreign-exchange exposure is currently cheap, says Christian Nolting of Deutsche Private Wealth Management, who gives his views on various currencies.
One of ChinaÆs most prominent institutional investors analyses the steps it expects could lead to a freely floating currency.