Asian Currencies Fall Back in Forex Trading

by Trader Rich

South Korean won leads emerging market currencies lowerRight now, investment in emerging markets is beating a retreat as worries that a global recession is imminent (if not already here) cause risk aversion. Emerging markets, like many Asian currencies, are seen as too risky for the current climate.

As a result, the South Korean won is leading Asian currencies lower in forex trading on the currency market. Credit rating cuts are being considered for Asian banks, and this is not promoting confidence in emerging market currencies. Bloomberg reports on emerging market issues:

“The U.S. should already be in a recession and that will have an impact on Asian exports,” said Ang Kok Heng, who manages 6 million as chief investment officer at Phillip Capital Management in Kuala Lumpur. “Investors are making a 180-degree retreat” from emerging-market assets, he said.