Tag
Carry Trade
5 articles
Mexican Peso Weakens as Carry-Trade Unwind Compresses Rate Spreads
The peso fell 1.8 percent to 17.95 per U.S. dollar Monday, driven by narrowing interest-rate differentials between Mexico and the U.S.
London Banks Capitalize on Gilt Carry as BOE Financing Stays Cheap
UK lenders are borrowing at minimal rates from the Bank of England and reinvesting in higher-yielding gilts, capturing spreads as the market prices in future rate increases.
Thai Baht's Rate-Hold Bounce Has No Follow-Through
Strategists say the baht's post-hold gain will fade as the Bank of Thailand's dovish bias and rising oil prices sustain structural pressure on the currency.
Hedge Funds Halved Yen Short Bets After U.S.-Japan Intervention
CFTC data through Aug. 4 shows bearish yen positions cut by roughly half as coordinated U.S.-Japan action stabilized the currency.
Yen at 159 Per Dollar as 180-Basis-Point Rate Gap Sustains Carry Trade
Two rounds of intervention have failed to hold the line; the Treasury-JGB spread is the structural force Tokyo cannot unilaterally close.