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Emerging markets' rebound too optimistic: Soc-Gen
THE ongoing rebound in emerging markets is too optimistic, said French bank Societe Generale's Asia-Pacific head of interest rates and forex derivatives corporate sales, Samuel Henry.
This is because the US is recovering and is still going to raise interest rates, Mr Henry said.
"Most emerging market currencies are volatile and are likely to keep depreciating, not because we expect regional economies to deteriorate, but first because the Fed is going to increase rates," he said.
While jobs data disappointed recently, employment in the US has improved a lot in recent years.
"That means the recovery in the US is really happening," he said.
Mr Henry was speaking to The Business Times on the sidelines of the Sibos 2015 conference, an annual banking event organised by SWIFT, the Society for Worldwide Interbank Financial Telecommunication. SWIFT manages the global messaging system for banks.