Carry trade gains traction as currency volatility turns lower
Add BT as a preferred sourceDeeperDive is a beta AI feature. Refer to full articles for the facts.
New York
CONDITIONS in the US$5.3 trillion foreign-exchange market have turned supportive for one of the most popular trading strategies - the carry trade.
Returns from the technique, in which investors borrow in currencies with low interest rates and use the proceeds to buy an asset with higher rates, advanced last week to the highest levels since December, according to a Deutsche Bank AG index. The results were aided by rallies this month of 4 per cent for both South Africa's rand and Canada's dollar against the euro.
Share with us your feedback on BT's products and services
TRENDING NOW
Shelving S$5 billion office redevelopment plan proved ‘wise’ as geopolitical risks mount: OCBC chairman
Eurokars Group introduces rental car franchises Enterprise Rent-A-Car, National Car Rental, and Alamo to Singapore
20 photos that show how dramatically Singapore has changed in two decades
Singapore’s key exports up 15.3% in March from electronics surge, exceeding forecasts
