Carry Trade Gets Turned on Its Head, Stoking Rush to the Dollar

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For decades, carry traders have borrowed US dollars at low interest rates and invested in higher-yielding emerging-market currencies. But that flow is now getting turned on its head.

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Citi, JPMorgan See Carry Trade Revival as Fed Hawkisness SpreadsEmerging-market currencies will be attractive for carry traders as hawkishness has been spreading from the Federal Reserve to many developing central banks, according to strategists from Citigroup Inc. and JPMorgan Chase & Co.
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