NEW DELHI: In the battle between Asia’s two highest-yielding major markets, Indian assets look more promising than those of 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 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.