7 days ago
Carry Traders Ramp Up Bets in Emerging Markets as Fed Cuts Loom
Carry trade is making a comeback among emerging market investors as bets the Federal Reserve's will kick off interest-rate cuts next month weaken the dollar and fuel appetite for high-yielding currencies.
Money managers from Neuberger Berman Group LLC to Aberdeen Group Plc. are piling into currencies from Brazil, South Africa and Egypt, saying a weaker greenback and easing volatility make the environment ripe for the strategy, in which traders borrow in lower-yielding currencies to buy those that offer higher yields.
