Asean importers increase forex hedging in expectation of dollar liquidity tightening
The relaxation of the Fed stance on tapering hasn't reassured South-east Asian corporates
Asean firms importing goods into domestic markets have ramped up their forex hedging following signals given by the US Federal Reserve that it may begin tapering its quantitative easing (QE) programme by the end of the year, according to market participants.
Suggestions at the end of May that the US could slow its bond buying programme by the end of this year prompted a significant outflow of investor cash and an immediate impact on the region's forex and swap rates.
Between the start of June
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