A masked George Washington on a US dollar note next to euro banknotes. Carry trades, which have been dormant since the global financial crisis, are set to come back in a big way. Photo: Reuters
Opinion
Opinion
Macroscope
As interest rates rise, G10 currencies could soon offer investors some fast and furious action
- With Covid-19 recovery and some central banks raising interest rates quickly, ‘carry’ trades that milk the rate differences between currencies are coming alive again
- Investors should also look out for divergence between policy directions and markets
A masked George Washington on a US dollar note next to euro banknotes. Carry trades, which have been dormant since the global financial crisis, are set to come back in a big way. Photo: Reuters
