Most Asian currencies have risen strongly so far this year amid a recovery in global risk appetite. However, the rebound is unlikely to last long. We are of the opinion that the euro-zone will slip into recession this year, which is likely to lead to a limited break-up of the currency union. The resulting shock to global investor confidence is likely to lead to a renewed fall in investor risk appetite, putting downward pressure on currencies.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services