Sliding volatility in global currency markets is increasing the allure of carry trades and the most appealing targets are the Mexican peso and Indonesian rupiah, according to a Bloomberg analysis.
A JPMorgan & Chase Co. gauge of global foreign-exchange volatility dropped to 8.2 percent on Tuesday, the lowest level since November 2014, and down from as high as 12.5 percent in February 2016. An index of carry-trade returns from eight developing nations against the dollar has risen 5.5 percent this year, set for its biggest annual gain since 2012.
