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 Gold Prices Dip as Strong Retail Sales Data Reduces Likelihood of Fed Rate Cut READ MORE Poland’s 50/50 gold buying: 50 tonnes bought over 3 months, but another 50 tonnes to go READ MORE Gold Forecasts Range from 25% to 50% Upside Over the Next Few Years READ MORE Saudi Arabia Officially Joins BRICS READ MORE Silver: "A Quadruple From Here Is LOGICAL" READ MORE Add a Comment Cancel replyYour email address will not be published.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