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

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

Face it, the yen carry trade of borrowing cheap at near zero interest rates is dying.

From The Wall Street Journal • Feb. 15, 2026

Cheap credit from the yen carry trade provided some.

From The Wall Street Journal • Feb. 15, 2026

An unwinding of the yen carry trade, estimated between $1.3 trillion and $1.7 trillion, could send a tide of money back to Japan.

From Barron's • Jan. 13, 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