US Dollar Emerges as New Funding Currency for Carry Trades Citigroup reports a resurgence of the carry trade, but with a notable shift: hedge funds are now using US dollars instead of yen to fund investments in emerging markets. This change is driven by expectations of Federal Reserve rate cuts and the Bank of Japan’s recent rate hike, which have altered the traditional carry trade model. Hedge funds are increasingly bearish on the dollar and are using it to purchase emerging market currencies like the Brazilian real and Turkish lira. However, Citigroup anticipates this window for carry trades may be short-lived due to potential volatility surrounding the upcoming US presidential election. « Previous Article Next Article » Share This Article Choose Your Platform: Facebook Twitter Google Plus Linkedin Related Posts Jobs Data Shows Jobs Decreased for Second Month in a Row READ MORE Gold's Bullish Momentum: Setting the Stage for 2024 Amid Economic Uncertainties READ MORE S&P 500 Hits 20th Record Record High in 2024 READ MORE OPEC+ Negotiates Long-Term Extension of Oil Output Cuts READ MORE Crude Oil Rally Continues: Third Weekly Gain as Middle East Tensions Escalate READ MORE Add a Comment Cancel replyYour email address will not be published. Required fields are marked *Name * Email * Save my name, email, and website in this browser for the next time I comment. Comment