EM stress prompts investors to turn to options
The ongoing pressure on emerging market (EM) currencies has continued this week, with foreign exchange investors putting on significant positions in six- to 12-month put options to protect themselves against the ongoing weakness in key EM currencies.
The biggest moves this week have been in the Turkish lira, driven partly by the crisis in Syria. USD/TRY rose from 1.98 on Monday to a high of 2.07 on Wednesday, according to data from Thomson Reuters, while EUR/TRY rose from 2.66 to 2.77 before
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