JPMorgan has stated that despite the recent market pullback, it remains bullish on global foreign exchange carry trades, supported by solid growth prospects.

Strategists including Anthony Delay wrote in a report that global and emerging market carry portfolios have retreated from their mid-September highs, but the scale of this pullback appears excessive relative to the fundamentals reflected in interest rate markets.

Even so, "we maintain a bullish bias toward global FX carry trades" because economic growth is expected to remain solid.

"A further selloff in US short-term rates remains a risk," the report added. Latin American exposure has been significantly reduced, and among current long positions, the Indian rupee and Indonesian rupiah together account for 25%.