The global currency market is vulnerable to a liquidity crunch later this year as financial conditions tighten and economic growth slows, Bank of America Corp. warned. Even after the market emerged relatively unscathed from the latest banking turmoil, implied volatility in major currency pairs jumped this month as concerns about the US banking sector weighed on the dollar and drove the yen higher. Still, the move was “far from crisis levels,” strategists at BofA said. Volatility remained lower compared with late last year, when a surge in demand for the US currency drove euro-dollar one-month implied volatility to ... (full story)