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

See Examples For:

carry trade

A carry trade unwind, a selldown in U.S.

From The Wall Street Journal ● Sep. 9, 2026

“The carry trade is still a thing, and it will be as long as Japanese rates are much lower than the rest of the world,” Wallerstein told MarketWatch via phone.

From MarketWatch ● Sep. 8, 2026

The gap between U.S. and Japan interest rates had been contributing to the yen’s recent weakness, heightening its appeal for the so-called carry trade, in which traders use low-yielding currencies to invest in higher-yielding assets.

From The Wall Street Journal ● Sep. 7, 2026

This gap means investors borrow yen cheaply and invest in other assets outside Japan with better returns -- known as a "carry trade" -- resulting in capital outflows and more downside for the yen.

From Barron's ● Aug. 3, 2026

“While there may not be an immediate catalyst to exit the carry trade, the tails are fat and the probability for regime shift remains higher than usual.”

From MarketWatch ● Jul. 2, 2026