Indian Rupee becomes Asia's worst performer as carry trades go awry

Dhwani Mehta FXStreet

According to a story carried by Bloomberg, the Indian Rupee emerged the worst performers amongst the Asian currencies amid ongoing geopolitical and US-China trade tensions.

Further, the risk of overseas investors in rupee bonds having caught wrong-footed, as the carry trades fade, also weighed down on the sentiment around the Indian currency.

It’s worth noting that the currency slumped lost almost 3% against the greenback so far this month, remaining on track for its second-worst monthly loss in four years. The Rupee’s slump was mainly attributed to India’s escalated tensions with Pakistan, in the face of the recent Kashmir’s autonomy issue.

At the press time, USD/INR extends its corrective slide from six-month tops and trades near 71.30 levels.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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