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

A currency crisis in Japan might reverse the Japanese yen carry trade that has to date been a major source of financing to other countries.

From Barron's

A currency crisis in Japan might reverse the Japanese yen carry trade that has to date been a major source of financing to other countries.

From Barron's

A carry trade involves borrowing a currency at low interest rate and using the proceeds to buy currencies with higher yields.

From The Wall Street Journal

That is the kind of market event that, when tied to a broader retreat in tech stocks, heighted volatility in precious metals, and a slump in the U.S. dollar, analysts might normally associate with a better-understood phenomena: the unwinding of the yen carry trade.

From Barron's

“While there are continued concerns about a further unwinding of the yen carry trade, we are already seeing cracks in the broad speculative bid that has fueled markets in recent months, as investors start to raise questions about the utility of cryptocurrencies,” said Dennis Follmer, chief investment officer at Waltham, Mass.-based Montis Financial.

From Barron's