Currencies in Korea and India vulnerable to Greek deterioration

Predictions and calls that Greece must restructure or default on its debt, and even leave the euro, have mostly been limited to political commentators and economics journalists. Banks, perhaps for obvious reasons, have generally been reluctant to join them. Many are exposed directly, all are vulnerable indirectly.

Although it stresses that “a significant deterioration in the Greek situation” is not its base case, Nomura nevertheless thought it wise to investigate the likely impact on Asian currencies if such an event did, in fact, happen.

According to the report, released on June 29, the Korean won and Indian rupee are most susceptible to a “Greek inspired market selloff”....