Risk Sends Asian Currencies Lower in FX Trading

by Trader Rich

Emerging market currencies hit by risk aversionEven though equities are rebounding around the world this morning, there is still a great deal of risk aversion on the currency market. And this means that emerging market Asian currencies are being hit in FX trading.

The forex trading forecast for Asian currencies is likely to remain somewhat negative, since many traders will want to wait and see how the global economy does. They also want to make safer plays until the recession ends.

Bloomberg reports on emerging market currencies in Asia:

“Sentiment is likely to remain negative on Asian currencies and equity markets, given concerns over the duration and depth of a global recession,” said Jimmy Koh, head of treasury research at United Overseas Bank Ltd. in Singapore.