Hedging North Asia FX risk

Background: Contrary to general expectation, Asian currencies have so far performed poorly in 2005 on the back of soaring oil prices, deterioration in current account balances, a downturn in the tech sector and some signs of moderating demand for Asian exports. Year to date through July 5, the JPY is down 8.06% against the USD, the THB 6.26%, IDR 5.72%, SGD 3.73%, KRW 1.34% and TWD 0.79%. With this, however, there have been some important themes. First, China and Japan have actually devalued

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