What’s Happening in EM: Carry Traders Shift Away From Dollar

Emerging-market traders are shifting carry-trade positions away from the US dollar toward the euro and Australian dollar to fund bets in developing economies, according to discussion between Vinicius Andrade and Kelsey Butler this week. Carry trades involve borrowing in one currency at lower interest rates to invest in higher-yielding assets elsewhere. The shift reflects changing conditions in currency markets as the US dollar has strengthened.

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