carry trade

British  

noun

1. finance a speculative transaction in which a trader buys the currency of a country with a high rate of interest and sells the currency of a country with a low rate of interest

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Example Sentences

Years of ultra-low rates in Japan pushed the country’s heavyweight investors abroad for returns with a popular “carry trade,” borrowing yen to invest in higher-yielding U.S.

From Barron's

For economist Jeroen Blokland, economist and manager of the Blokland Smart Multi-Asset Fund, the jump in gold owes something to the ongoing carry trade in the Japanese yen, whereby investors take a short position in the yen to fund long positions in higher-risk assets elsewhere.

From MarketWatch

In a posting on X, Blokland writes that last week’s rate hike by the Bank of Japan, taking its policy rate to 0.75% and the highest since 1995, has not ended the carry trade.

From MarketWatch

Concerns persist regarding the sustainability of the AI investment boom, high valuations of megacap tech stocks, and a potential unwinding of the yen carry trade.

From Barron's

And that could trigger an unwinding of the so-called yen carry trade, in which investors borrow the Japanese currency to invest abroad.

From Barron's