The Weak Dollar Fuels Popular Carry Trades

Reported 2 days ago

The U.S. dollar's weakness since Trump's presidency has made it a favored choice for 'carry' trades, driving investments into higher-yielding emerging market currencies like the Indonesian rupiah and Indian rupee. Analysts predict that the ongoing dollar depreciation will only enhance these trades, evidenced by a notable increase in dollar-funded investments in regions such as Asia and Latin America. As investors return to the carry trade strategy, the dollar may further weaken, particularly with high yields in countries like Brazil and Turkey.

Source: YAHOO

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