I think whoever is advising you is not very good (or is using you for fees). There is no way to take advantage of an interest rate differential without taking on FX risk. If there were then investment banks and hedgefunds could very easily set up a risk free money making machine that churns...
This is an old thread that has been dug up again!
Alex is spot on. Currency risk is the reason why its not attractive. You can take away currency risk by hedging (locking in an exchange rate) - look up "covered interest arbitrage". When you do this you will find the forward exchange will...
