Easing currency volatility is giving fresh support to emerging-market carry trades by reducing risk, according to analysts at Mizuho Securities Co. and Goldman Sachs Group Inc.
EM currency volatility has fallen around 1.3 percentage points this quarter, declining faster than a similar gauge that tracks a Group-of-Seven currencies, according to JPMorgan Chase & Co. data. The ratio between the two indexes fell to its lowest since 2013 last week and the trend may continue with the dollar rangebound.