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Mexican Peso, Rupiah Carry-Trade Burnished by Low Volatility

  • Peso, rupiah most attractive of 26 peers in Bloomberg analysis
  • Gauge of emerging-market carry trades has gained 5.5% in 2017
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Photographer: William West/AFP via Getty Images
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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.