EUR/INR: Still a good carry play - ANZ

ANZ analysts suggest that although the Indian economy faces multiple constraints on growth, the price action in INR is encouraging, especially given the recent back-up in oil prices.

Key Quotes

“We see EUR as a sell on rallies as disinflationary pressures in the euro area grows, prompting policy easing from the ECB.”

“Selling EUR/INR has positive carry of 8% annualised, which is very attractive in an environment of falling yields. INR is also the least exposed in Asia to US-China trade tensions.”