Asia Centric: Cheap North Asian Currencies Reach Turning Point
North Asian currencies – including the Japanese yen, South Korean won, Taiwan dollar and Chinese yuan – are trading at some of their deepest discounts on record, dropping up to...
By Clara Chen · Bloomberg
North Asian currencies – including the Japanese yen, South Korean won, Taiwan dollar and Chinese yuan – are trading at some of their deepest discounts on record, dropping up to 56% below purchasing power parity. These depressed valuations persist despite strong macro fundamentals, backed by massive foreign exchange reserves and their status as top global creditors. However, this valuation gap is beginning to snap back as booming domestic economies, rising retail sales, and increasing inflation p