Currency Trading Goes Bipolar

RORO IS ONE OF THE GREAT HEADACHES OF THE CURRENCY trader’s existence. Short for “risk on/risk off,” RORO has been the most powerful influence on foreign exchange in the past few years. The idea: When market participants are confident in the economic outlook, they take on risk by piling into currencies like the Indonesian rupiah and the Brazilian real. When confidence ebbs or a crisis hits, they rush to shed risk, seeking safe havens like the U.S. dollar.