| Although currencies this year have shown volatility and that trend is expected to continue in 2016, foreign exchange (FX) hedging by Thai traders has not changed, according to Krungsri Group. Half of the total Thai traders had FX hedging compared to 80 per cent of Japanese operators.
Tak Bunnag, head of Global Markets Group, said the cost of hedging is not high when compared to the risk of currency volatility. The hedging cost of Malaysia's ringgit is 2.57 per cent but it can cover the currency depreciation of 20 per cent, while the hedging cost of the baht is 1.8 per cent, covering depreciation of 8.6 per cent. ............................................Full Article: Source
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