Reported 1 day ago
Emerging market investors are growing cautious about carry trades due to rising currency volatility stemming from potential tariffs and a stronger dollar. Specific currencies from Latin America and Asia, particularly the Mexican peso and yen, are under pressure as trade tensions with the US escalate. Analysts suggest that recent moves by central banks, particularly in Japan, and the unpredictability of tariff policies could further hinder carry trade profitability, making it a risky strategy in the current environment.
Source: YAHOO