Treasury’s new headaches Part I: Why currency swings, not rates, are rattling Asia’s corporates

The pause in rate hikes was meant to bring relief. Instead, Asia’s treasurers are confronting a new kind of uncertainty – one where FX volatility, not funding cost, is driving strategic risk decisions.
Treasury’s new headaches Part I: Why currency swings, not rates, are rattling Asia’s corporates

After two bruising years of rising borrowing costs, finance chiefs across Asia had hoped a plateau in policy rates would finally bring some respite. Instead, a fresh bout of foreign-exchange turbulence is forcing treasurers to tear up the hedging playbooks they wrote for an era of interest-rate risk and fire-drill liquidity management.

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