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The Carry Trade Unveiled
A "carry trade" is essentially borrowing money cheaply and investing it in higher-yielding assets. With Japan having some of the lowest interest rates for years, the yen has become the go-to currency for these trades.
The Downside of Yen Appreciation
When the yen appreciates, carry trades can become less attractive. Not only does the cost of borrowing yen rise, but if the dollar also weakens, it ofte...
A "carry trade" is essentially borrowing money cheaply and investing it in higher-yielding assets. With Japan having some of the lowest interest rates for years, the yen has become the go-to currency for these trades.
The Downside of Yen Appreciation
When the yen appreciates, carry trades can become less attractive. Not only does the cost of borrowing yen rise, but if the dollar also weakens, it ofte...
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