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

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carry trade

After a big blowup in the summer of 2024 that sent global stocks reeling, the currency-market carry trade has made a big comeback.

From MarketWatch ● Jul. 10, 2026

With markets anticipating Fed rate hikes and gradual tightening by the Bank of Japan, the so-called carry trade is in full effect.

From The Wall Street Journal ● Jul. 2, 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

“The yen carry trade is the global liquidity lever almost no one watches until it moves,” said Michael Gayed, portfolio manager of The Free Markets ETF.

From Barron's ● Jun. 30, 2026

Investors have long borrowed cheaply in the Japanese currency and put the cash to work in higher-yielding markets, a tactic known as the yen carry trade.

From Barron's ● Apr. 30, 2026