Friday, June 20, 2008

Forex Carry Trade Unwinds Nearly 6 Percent, History Says it May Go Further

Forex Carry Trade Unwinds Nearly 6 Percent, History Says it May Go Further
The widely popular forex carry trade has recently fallen from previous heights, forcing sizeable drawdowns in portfolios that held long-carry positions. Going long the three highest-yielding G10 currencies and short the three lowest-yielders produced a 5.7 percent decline in a matter of 20 days.

Forex Carry Trade Unwinds Nearly 6 Percent, History Says it May Go Further

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