RBI's tight grip on Rupee boosts its allure for carry trades: Fidelity

Fidelity International notes that the Indian central bank's control over the rupee enhances its attractiveness for carry trades. With higher yields and lower volatility than its regional counterparts, a money manager at Fidelity in London, the rupee emerges as one of the most appealing currencies globally.

Despite reaching a record low in April, the Indian rupee has maintained its position as the best-performing Asian currency this year, experiencing only a marginal 0.2% decline against the dollar. This resilience is attributed to the Reserve Bank of India's repeated interventions to stabilize the currency's value. Additionally, India's steady interest rates, along with the recent inclusion of Indian bonds in JPMorgan Chase & Co.'s global index, have attracted overseas investors, further bolstering the rupee's appeal.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.