Rupiah Will Beat Rupee in Battle of High-Yielders, Goldman Says
- Commodity bounce, portfolio flows, elections to favor rupiah
- Recent INR outperformance over IDR is overdone, will reverse
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Indonesia’s rupiah is set to outperform the Indian rupee, thanks to the diverging impact of oil prices, portfolio flows and monetary policy sensitivities to the Federal Reserve, according to Goldman Sachs Group Inc.
“Although India and Indonesia are typically clubbed together under ‘high-yielding’ Asian currencies, there are several key differences in the structure of both economies that may differentiate their market performance and create investment opportunities,” economists including Nupur Gupta and Jonathan Sequeira, wrote in a Jan. 7 note.