Investing in Asia’s worst-performing currency is all about the interest rate.
While the rupee fell 0.6% versus the dollar this year, flows from stock and bond investors both turned positive in March amid slower inflation, an improved current account and budgetary discipline. Including interest, investing in rupees will earn 2.9% from now until Dec. 31, according to strategists’ forecasts compiled by Bloomberg, the most in emerging Asia.
Interest rates below zero in Europe and Japan are attracting investors to a nation that has the second-highest yield among key Asian markets and the fastest growth among major economies. The rupee’s allure has been burnished by central bank Governor Raghuram Rajan’s success in replenishing foreign-exchange reserves and taming consumer prices and the trade deficit.
Prime Minister Narendra Modi’s Feb 29 budget sparked a rally in India’s rupee, bonds and stocks as the government’s resolve to narrow the fiscal deficit to a nine-year low boosted investor sentiment. Data showing inflation eased to a four-month low in February also increased odds of interest-rate cuts by Rajan, while demand for emerging-market assets has picked up amid global central bank stimulus.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
While the rupee fell 0.6% versus the dollar this year, flows from stock and bond investors both turned positive in March amid slower inflation, an improved current account and budgetary discipline. Including interest, investing in rupees will earn 2.9% from now until Dec. 31, according to strategists’ forecasts compiled by Bloomberg, the most in emerging Asia.
Interest rates below zero in Europe and Japan are attracting investors to a nation that has the second-highest yield among key Asian markets and the fastest growth among major economies. The rupee’s allure has been burnished by central bank Governor Raghuram Rajan’s success in replenishing foreign-exchange reserves and taming consumer prices and the trade deficit.
Prime Minister Narendra Modi’s Feb 29 budget sparked a rally in India’s rupee, bonds and stocks as the government’s resolve to narrow the fiscal deficit to a nine-year low boosted investor sentiment. Data showing inflation eased to a four-month low in February also increased odds of interest-rate cuts by Rajan, while demand for emerging-market assets has picked up amid global central bank stimulus.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
0 comments:
Post a Comment