World’s Best Carry Trade Finds Unlikely Home as Ruble Rebounds
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Carry traders who weren’t put off by Russia’s market turmoil last year are getting the world’s best deal in 2015.
Borrowing in dollars to fund purchases of ruble debt earned 9.6 percent since Jan. 1, exceeding the second-best currency, the Indian rupee, by more than three times. Even as bearish signals mount that the ruble’s 5.4 percent rally this year -- the biggest among 31 major currencies -- has gone too far, there’s scope for that trade to remain lucrative, according to Renaissance Capital and ING Groep NV.