Cheaper Indian Rupee Boosting Its Lure as Carry Trade, Bank of America Says
- Fair value of rupee is around 82.50 to a dollar: Hauner
- Currency’s risk of correction is lower than peers, he says
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The Indian rupee is stable and inexpensive compared to its emerging market peers, making it a favorite for carry traders, according to Bank of America Corp.
“If you hold it for the carry, you don’t have much risk that it will depreciate a lot, which would be a greater risk in some of the other carry trades,” David Hauner, head of global EM fixed-income strategy at the bank, said in an interview.