carry trade

Emerging-market carry trades remain resilient despite joint US-Japan currency intervention that reduced the yen's appeal as a funding source. Investors are avoiding the yen's gains while continuing to support these foreign-exchange strategies.

Bitcoin rose toward $65,000 as softer economic data reduced concerns over a September Federal Reserve rate hike. U.S. Treasuries briefly outperformed the carry trade for the second time on record, while Bitcoin spot trading volume remained near multi-year lows.

Carry trade, a foreign-exchange investment strategy, is experiencing its best performance in decades as low volatility in asset classes encourages investors to increase participation in this strategy.

COLCAP rose 0.65% to 2,307.67 as the USD/COP currency pair approached a 52-week low of 3,242, driven by oil prices, carry trade activity, and capital inflows.

The dollar's strength is raising concerns about a potential yen 'carry trade' blowup, with significant implications for global markets. The yen-dollar balance is currently a critical factor influencing market dynamics.

Bitcoin's 52-week correlation with the USD/JPY currency pair reached -0.90, challenging the 'carry trade' theory. The strong negative correlation suggests a potential inverse relationship between Bitcoin's price movements and the yen's performance against the dollar.

Yen short bets have reached a nine-year high, indicating increased speculation against the Japanese currency. This trend coincides with a revival in carry trade activity, where investors borrow low-yield currencies to invest in higher-yield assets.

The South African rand has shifted from a carry trade loser to a winner as bond inflows surged, according to the article. The content also references South African rand banknotes and coins.