Analyst: Fluctuations in emerging market exchange rates have decreased and boosted arbitrage trading, high-yield currencies remain attractive.

The Securities Times APP learned that analysts from Mizuho and Goldman Sachs stated that reducing currency volatility helps to reduce risks, providing new support for arbitrage trading in emerging markets. According to data from J.P. Morgan, the volatility of emerging market currencies has decreased by about 1.3 percentage points this quarter, a larger decline than the same indicator for the Group of Seven (G7) currencies. Last week, the ratio between these two indices dropped to its lowest level since 2013, and this trend may continue as the volatility of the US dollar remains within a certain range.