South Korean won

For us, we are still more, number one, RMB appreciation and RMB approximate appreciation.

For example, I think RMB appreciate maybe the neighboring currencies like Korean Won, or even Aussie dollar can benefit from that, right? And then some of them have high rates like Aussie dollar.

And the second one is, I don't think wash will become as hawkish as the market expects or as market price gene.

So I think long front end US rates make sense against short, the back end Chinese rates.

I'm recording this episode on September the fourth, and my colleagues recorded on September the third.

Since the middle of the year, EMFX has been rallying, with some particular standouts like the Korean won, which has soared twelve percent, or the Colombian peso, which is up eight percent.

The reason for this lift is the relatively ebullient macro backdrop.

As listeners of this podcast will know, EMFX is best suited to a climate of robust growth and cool inflation.

Asia in particular is vulnerable to higher energy prices, given that the region is generally made up of oil and gas importing economies.

So even though a lot of Asian tech exporters enjoy the glow of AI, the region is relatively vulnerable to higher energy prices.

And to this point, we remain long the Korean won to position for incoming CapEx, but we fund this trade in other energy exposed currencies like INR, IDR, and the euro.

We're also long the Malaysian ringgit, which as it turns out, is Asia's only major energy exporter.