5 Asian EM currencies to watch after UK referendum: Citi

SINGAPORE (June 22): Citi Research’s chief economist continues to expect the “remain in the EU” side to win, amid increasing uncertainty of the outcome. Results of the UK’s EU referendum – which determines whether Britain stays or leaves the EU – are expected to be out this Friday.

In a report published last Thursday, Citi says that regardless of a Brexit or Bremain outcome, it is likely to emerge looking to add risk in emerging markets (EM) in Asia.

This is because in Citi’s opinion, additional negative fundamental and political impulses will probably take time to pan out – while in the short run, policy makers are likely to quickly add further stimulus and limit spill overs. The result is an opportunity to add risk in EM given the “broadly constructive backdrop amidst a much more dovish Fed and a period of some stability in Chinese data and markets,” says the team.

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