New Delhi, June 8 -- Global investment bank Goldman Sachs has said the Reserve Bank of India's recent policy measures are likely to help contain depreciation pressures on the Indian rupee by supporting foreign capital inflows and strengthening the country's external balance sheet, even though the currency may not witness any sharp appreciation.

In its Global FX Trader report, Goldman Sachs said there is an increasing case for including the Indian rupee in diversified emerging market carry trade portfolios, citing improved yield attractiveness and supportive regulatory measures announced by the RBI.

The brokerage noted that the rupee's carry returns have risen significantly since the onset of the US-Iran conflict and are now higher than ...