BlackRock Avoids Fed-Depressed Dollar in Carry Trade: Currencies
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The dollar is becoming too expensive for investors in Asia to use as a source for funding carry trades in the region, a development that may help extend the currency’s best annual gain since 2008 into next year.
BlackRock Inc. and Amundi, which together oversee more than $5 trillion, are considering currencies other than the dollar to fund trades in Asia that rely on borrowing cheaply in one exchange rate to buy those of nations with higher interest rates. Carry trades that sell dollars to purchase a basket of currencies containing Indonesia’s rupiah and the Thai baht made