Asia FX barrier options back in favour
SINGAPORE - Asian investors are showing renewed interest in foreign exchange barrier option structures as risk appetite improves. But dealers note trading is mainly concentrated with regional banks, as foreign banks remain wary of the risks.
One foreign exchange strategist at a US bank in Hong Kong said there had been renewed interest by clients to bet on dollar weakness versus emerging market currencies. To make the trades cheaper, some were entering into barrier trades where the options expire
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