Corporate foreign exchange news

The rally on Asian stock markets has helped to strengthen appetites for risk among foreign exchange traders this morning (August 24th).With Japan's Nikkei Index, South Korea's Kospi and the Hong Kong Hang Seng Index all rising, traders once more began moving out of lower-yielding currencies such as the yen and the dollar and into riskier assets.However, there is speculation that demand for the Australian dollar, which rose 19 per cent in July on the back of higher risk tolerance, may remain subdued as a contingent of traders expect that the rally has come to an end.Speaking to Bloomberg, Anthony Michael, the Singapore-based head of fixed income at Aberdeen Asset Management Asia, said that it is difficult to see the trend continuing."We're pretty much sitting on our hands at current levels," he said, adding that the currency would have to fall to around 80 cents for the company's position to change.