Analysis-Lucrative foreign exchange trade sustained by low volatility
An unusual calm enveloping foreign exchange markets is extending the life of a lucrative trade beyond what many had expected. The so-called carry trade, which involves borrowing in a low interest-rate currency to invest in a higher-yielding currency, had been expected to fade as major central banks pivot away from hiking rates toward easing policy. However, a major shift has yet to happen, keeping currency markets calm and the trade, which relies on such stability, an easy winner.
Source: yahoo.com