India's Rupee Beats Indonesia's Rupiah In Asia Money Mart

In the battle between Asia’s two highest-yielding major markets, Indian assets look more promising than those of Indonesia, Ronojoy Mazumdar and Jas Bardia reported for Bloomberg News.

Photo Insert: The Indian currency offers higher compensation for risk than the rupiah, with a carry-to-risk ratio of 2.8 compared with just 0.5 for Indonesia

While the Indian rupee has been the second best to the rupiah in terms of carry returns so far in 2023, that looks set to change in the second half of the year as investors including Amundi SA and HSBC Holdings Plc see the former as the standout choice.

The Indian currency offers higher compensation for risk than the rupiah, with a carry-to-risk ratio of 2.8 compared with just 0.5 for Indonesia, according to data compiled by Bloomberg.

The highest bond yields among major Asian nations and a less volatile currency thanks to the central bank’s intervention are burnishing the appeal of rupee assets. Foreigners plowed $10 billion into Indian stocks this quarter so far, helping the rupee climb to the top of currency charts.

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