Carry Trade Lifts Emerging Markets Still on Lookout for Growth
- Currencies to remain stable without growth surprises, GAM says
- Indonesians prepare to vote as rupiah outperforms most peers
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If the muted reaction to the flurry of potentially market-moving events last week is anything to go by, emerging-market currencies are unlikely to be headed into a period of major price swings. But that’s just fine for the carry trade.
A Bloomberg currency index that measures carry-trade returns from eight emerging markets funded by short positions in the dollar gained for a second week in the five days through April 12, its first back-to-back increase in more than two months. At the same time, expected swings in currencies fell for a second week, according to a JPMorgan Chase & Co. gauge.