Asset managers will need to re-balance their hedges after what has been a tumultuous month for international asset markets (due to the Japanese earthquake and tsunami). This will normally be done either today or tomorrow and Citibank research suggests that the JPY will be the big beneficiary, where foreign investors are over-hedged.
Their analysis suggests EUR, GBP, CAD and Scandi selling; and CHF, AUD and NZD buying. The net impact on the USD is not discussed.
