Currencies Question
Will the global interest rate cut may hamper carry trades?
Asked by MNSL in
Currencies
one year ago
Best Answer
825 points
Dragonsbane answered 10 months ago …
The carry trade is already dead. It was killed more by the increase in volatility than the rate cuts. But with the interest rate spread decreasing, that would make the carry trade even more difficult since the lower return would require even lower volatility to compensate.
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