Taming of Asia's most volatile currencies creates new danger

Kuala Lumpur

POLICYMAKERS in Indonesia and Malaysia have been so successful in quashing currency volatility that this is breeding a new danger: complacency.

Traders are being deprived of the experience to cope when fluctuations inevitably return, according to PT Bank OCBC NISP in Jakarta. At the same time, companies may cut back on hedging, exposing themselves to potential losses, said PT Sinarmas Sekuritas.