Foreign exchange - Carry on regardless

Carry trade


The carry trade stubbornly refuses to give up the spotlight. Since March, when an appreciating yen sparked fears of a rapid unwinding of carry trade positions and a systemic rout, it has rarely been far from commentators' lips.The carry trade is "so simple anyone can understand it", says one London-based banker, which may itself be a reason why it has commanded so much recent attention. The strategy involves borrowing in the currency of a country with low interest rates and investing in high

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