For EURUSD bears, the recent slide of short-term euro interest rates below short-term Japanese interest rates – for the first time in modern history – should have heralded a new paradigm in the FX ...

The carry trade should not exist, according to academic theory. Uncovered interest-rate parity predicts that high-yielding currencies should depreciate, but that has failed repeatedly over the years ...

(Bloomberg) -- The yen carry trade that crashed and burned last year may end up being one of the biggest beneficiaries of Japan’s seismic election result. The popularity of the strategy, which ...

Emerging-market currency volatility at a one-year low is poised to sap demand for Asian foreign exchange in favor of its higher-yielding European and Latin American peers. Falling volatility means ...

Japan's bond market is igniting fears of capital flight from the U.S. and a carry trade unwind as long-dated yields hover near record highs. Yields resumed their move higher Wednesday as demand for 40 ...

The market is pricing in a Bank Negara Malaysia interest-rate cut in coming months while economists expect a hold, presenting a potential opportunity for a carry trade. BNM cut rates by a quarter ...

Once considered a relic of pre-2008 trading, the yen carry trade is beginning to stir once more - like a familiar ghost returning to old haunts. With traders eyeing up Japan’s ultra-low rates and a ...

Separate literatures study violations of uncovered interest parity using regression-based and portfolio-based methods. We propose a decomposition of these violations into a cross-currency, a ...