Economics
Carry-Trade Currencies Rally as Fed Weighs Rate-Rise Timing
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Currency investors lamenting the dollar’s recent wobble are taking comfort in the revival of one of their most popular strategies: the carry trade.
Using the U.S. currency to purchase higher-yielding assets from Australia and New Zealand to Brazil and Mexico is again bearing fruit, after such trades hemorrhaged cash last quarter, data compiled by Bloomberg show. A gauge of the greenback has fallen from a decade-high reached March 13 amid debate on the timing of U.S. interest-rate increases.