India Looks Set to Weather Global Bond Rout With Record Reserves
- Rupee has advanced this year even as its peers struggle
- Bonds offer more stable returns than rival EM markets
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India’s record foreign-exchange reserves and a rare current-account surplus look set to cushion the nation’s currency and bonds from a global surge in interest rates.
While the central bank does have its hands full managing the government’s large debt issuance, strategists see the country in a much stronger financial position now than it was during previous bouts of turmoil in world markets. They cite the rupee, which has eked out a gain this year, defying the slump seen in most emerging-market currencies, and relative stability of India’s bonds.