Opinion
Don't fall behind, use the REER
The real effective exchange rate holds the key to how the government can manage damaging rupee fluctuation, according to Kotak Mahindra Bank's Treasury Solutions team in India
The technology to succeed
In-house technology will drive volumes and profit, says Charles Marston, chief executive officer at Calypso in San Francisco
Heading for the final USD selling opportunity
Hans-Guenther Redeker, global head of FX strategy at BNP Paribas in London, suggests a way to take advantage of the prospect of near-term dollar strength to protect against the likelihood of longer-term USD weakness.
The relative merits of zero-premium structures
Zero-premium structures can do a better job as a hedge than a vanilla instrument, when the full cost of insurance is paid. By Kenrick Ramlochan, director, FX analytics and risk advisory at ABN Amro in London
Equity culture postpones dollar rally
Stephen Jen, head of currency research at Morgan Stanley in London, explains why he continues to expect strength in the greenback
Beware the soft option
Zero-cost foreign currency options negotiated with a bank are very often the first port of call for businesses looking to transfer funds overseas. However, these rarely translate into real value for money for small- to medium-sized enterprises where cash…
BoE rate cut: about time too!
Alan Clarke, UK economist at BNP Paribas in London, predicts that last week's cut is unlikely to spark a wave of rate cuts by the Bank of England
Protection with potential
Besa Deda, Commonwealth Bank of Australia's Sydney-based currency strategist, presents a way of combining a view that the aussie will weaken while protecting against adverse fluctuations for an Australian exporter
Asia takes electronic currency route
Electronic currency networks are coming to the fore in Asia as daily trading volumes reach an all-time high, according to Michael Weiner, co-founder and managing partner at CoesFx
How exchange rates drive monetary policy
With interest rates being a major driver of exchange rates, Peter Luxton, global markets adviser at Informa Global Markets, says with US rates appearing stretched, the outlook for the dollar is changing
Relative value after the peg
Marios Maratheftis, FX strategist with Standard Chartered in London, looks at where to find value in Asian currencies following the end of the Renminbi's dollar peg
Swissie likely to return to strength
Uninspiring Swiss fundamentals, a recovery in risk appetite, positive surprises in prominent global data indicators and potential political risks in Switzerland have all hurt the Swiss franc. However, EUR/CHF is on its way up, says, Benedikt Germanier,…
Hedging North Asia FX risk
Michael Image, FX structurer in Hong Kong, and Callum Henderson, head of FX strategy in Singapore, at Standard Chartered Bank, look at appropriate hedging strategies such as structured forwards or daily accrual forwards for hedging North Asian currency…
More terror likely to hit markets
The terrorist attacks that hit London are not the last we will see, and invetsors should react accordingly, says Andrew Busch, global market strategist at Bank of Montreal in Chicago
Predicting the unexpected
Extreme value theory is an effective way of predicting the large moves frequently seen in currency markets, says Collin Crownover, global head, investor risk advisory group at Citigroup in New York
Central Europe and Turkey: no cause for concern
The EU’s referendum/budget does not, as some have suggested, spell doom for central European currencies and the Turkish lira, says Meg Browne, head of FX research at Brown Brothers Harriman
Using probability for barrier placement
Mark Miklavs, director, structured derivatives at HBOS treasury services in London, develops an option hedging strategy to take advantage of the recent pick-up in volatilities by using normal distribution to provide a theoretical perspective on barrier…
Don't bank on a UK rate cut
A UK rate cut is far from a done deal, says Lee Ferridge, a proprietary trader at Rabobank International in London
Eurozone undermined by political concerns
Hans Redeker, global head of FX strategy at BNP Paribas in London, points to a return to awareness of political risk in the EU
Multi-hurdle barrier options
Remy Marino, head of structuring, interest rates, currencies and commodities at Calyon in New York, discusses how investors or hedgers can optimise the cost of their barrier strategies by utilising a multi-hurdle barrier option
Dollar recovery under strain
After recent strength the greenback looks vulnerable, according to London-based Lena Komileva, G7 Market Economist at Tullett Prebon
‘One size fits all’ is not appropriate
Sabrina Jacobs, FX strategist, capital markets, at Dresdner Kleinwort Wasserstein, says Asian currencies need to be looked at on an individual basis
‘FX markets are unreadable’
Foreign exchange markets are notoriously difficult to predict, so corporates shouldn’t bother, argues Simon Miles (right), currency strategist at Corporate FX. Instead they should focus on deciding how to hedge the risk so they can determine its real…
Euro returns to fair value
Stephen Jen, global head of currency research at Morgan Stanley in London, argues that the fall in the euro is more a reflection of the fact that the single unit was overvalued than a reaction to the ‘no’ votes in France and Holland.