carry trade

British

noun

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

"Collins English Dictionary — Complete & Unabridged" 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

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

Cheap credit from the yen carry trade provided some.

From The Wall Street Journal • Feb. 15, 2026

China is creating added liquidity in its yuan debt markets by offering the Japanese-style carry trade in which companies and countries can borrow in yuan to get lower yields and diversify their liabilities.

From The Wall Street Journal • Jan. 27, 2026

The White House and Treasury are watching the carry trade closely.

From Barron's • Jan. 26, 2026

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 • Dec. 22, 2025

Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023