Corporate foreign exchange news

Risk management strategists say hold rupiah

Tuesday, 13 April 2010 09:39:11 GMT

Published by Mark Smith-Halvorsen
With speculation growing that China may revalue the yuan in a matter of months, data analysts at Bloomberg suggest that the Indonesian rupiah may be the biggest winner as a result.
According to the newsgroup, the rupiah gained five times as fast the yuan in the 12 months that followed the last currency revaluation in July 2005, while South Korea's won also rose strongly.
Richard Benson, who oversees $14 billion of currency funds as an executive director at Millennium Asset Management in London and is backing the won and the ringgit, said gains may be seen throughout the Asian currency market.
"A Chinese appreciation will kick off tightening in the whole Asian complex of currencies. These currencies are fundamentally cheap," he explained.
Elsewhere, a survey of risk management strategists polled by Bloomberg showed a majority consensus for a revaluation to come by the end of this quarter, while a minority expected a rise by September.
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