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Abstract
In an interview, Collin Crownover, State Street Global Advisors' head of currency management, talked about investor appetite for G-10 and emerging market currencies, and how his global team has managed the volatility and political uncertainty that has characterised the foreign exchange market in recent months. He said they have seen two challenges across all markets but especially in currencies. One is trying to get a feel for the economic outlook, because it's their view that this type of anaemic and volatile economic recovery is consistent with what you would expect after such large financial shocks to the economy. Overall they tend to play relative-value strategies on emerging markets because being systematically long EM currencies can go bad, as it did for some in August and September. They believe one can generate returns much more stably in the relative-value space.