Barclays Launches New Asian ETN

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Barclays Global Investors is listing an Asian currency-focused ETN. The note will give investors access to new currencies previously unavailable to ETF and ETN investors: the Philippine peso, Chinese won, Indonesian rupiah, Thai baht, Malaysian ringgit, and the Taiwanese dollar. The new ETN is called Barclays GEMS Asia 8 (NYSEARCA:AYT).

The goal of the fund’s index is to replicate a diversified, multi-national money market strategy in eight Asian emerging markets. According to Murray Coleman for Index Universe, this is the third such dividend-paying currency exchange-traded product on the market.

Overall, Asian currencies were weighed down this month, as the global economy has dampened, and global growth has slowed.

The won has experienced its biggest decline since 1998, while Taiwan’s dollar posted its biggest loss in 7 years, reports Aaron Pan and Kim Kyoungwha for Bloomberg. Malaysian ringgit has its worst month since 2005 and investors sold off big time in the Philippines, Thailand, Korea, Taiwan and Indonesia.

The U.S. dollar is edging its way upward, as the latest eurozone data unveiled a weakening European economy. The U.S. dollar modestly extended its gains over the euro after a recent report showed factory orders are up.

This paints the picture of a slow recovery for the U.S. economy, providing the dollar with long-term support, reports Vivianne Rodrigues for Reuters.