TOKYO: Volatility has reawakened in the US$5.1 trillion foreign-exchange market, as traders start to imagine life without ultra-easy monetary policy. A gauge of expected swings in emerging-market currencies has surged above an equivalent measure for developed markets by the most since May. A JPMorgan Chase & Co index of three-month emerging-market currency volatility has climbed to 10.9% from 9.6% a week ago. The odds for higher rates following the Sept 20- Sept 21 meeting are 20%. “The view that central banks are not inclined to be pressing their policy pedals even further to the metal is boosting currency volatility,” said Ray Attrill, global co-head of foreign-exchange strategy at National Australia Bank Ltd in Sydney.

Source: The Star September 16, 2016 01:59 UTC