With the strongest US dollar level seen in decades, investors have to relate to both challenges and opportunities.
The Monetary Authority of Singapore’s recent move to tighten monetary policy will lower the impact of higher imported inflation and strengthen the local currency, experts said.
As central banks around the world hold record levels of reserves in Chinese renminbi, experts are split on whether the currency will be a rival to the US dollar.
The dollar has been on the rise since the Fed took a hawkish approach to its monetary policy, but what’s next?
Even the weakest countries in Asia should weather US Federal Reserve tapering and a slowing China.
The firm is also looking at allocating more to higher-yielding equity and fixed-income assets, noting how hard it is to achieve target returns these days.
The bank has signed a deal to provide a diversified currency index to Shinkin Asset Management as it pushes FX as a separate asset class to investors in the country.
The UK bank’s head of emerging Asia research, Peter Redward, looks forward to another tricky year for investors and forecasts an Asian bond sell-off.
The asset manager says its new dynamic strategic hedging programme for Asian currencies should prove timely, as the region's currencies are ultimately expected to rise against the dollar.
Hedging foreign-exchange exposure is currently cheap, says Christian Nolting of Deutsche Private Wealth Management, who gives his views on various currencies.
Most Asian currencies fell last week, but the winners in the long-run will be the economies that are most sheltered from global markets.