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Emerging Opportunities in Emerging Markets: Strategist

Residents shop for local goods at one of the downtown's busy sidewalk markets in Jakarta, Indonesia.
AFP | Getty Images
Residents shop for local goods at one of the downtown's busy sidewalk markets in Jakarta, Indonesia.

This strategist sees emerging trading opportunities in emerging market currencies.

Sure, out of crisis comes opportunity - but that may not be the case in the euro zone. At least that' the thinking of Chia Woon Khien, Head of FX Strategy for Emerging Asia at RBS, who thinks the real opportunities in forex are in the east.

Chia expects the biggest central banks to continue easing, and she's relatively bearish on the major currencies, especially compared to emerging market currencies. "There really isn't going to be a clear long winner in the Asian area," she told CNBC, but for now she particularly likes the South Korean won, the Philippine peso, and the Indonesian rupiah.

The won, Chia says, has been underperforming until recently, and she thinks it has more room to rise. The peso also looks cheap, she says, and she likes the currency's fiscal position.

Like the won, the Indonesian rupiah "is a big laggard," Chia says. But while South Korea could cut interest rates going forward, in light of falling inflation there, she thinks that's unlikely in Indonesia. In fact, she says, "the central bank is quite clear that they want a stronger rupiah." For those reasons, she is most bullish on the rupiah.

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