FX Carry Trade is Back

Uncovered interest rate parity suggests that currency returns should relate to interest rates in a pretty straightforward way. For example, the short-term interest rate in American dollars is about 0.25% and the comparable rate in Australia is 3.0%. According to the uncovered interest rate parity, the Australian dollar should depreciate against the American dollar by [...] View the full post at: FX Carry Trade is Back Related posts: Forex: British Pound and Australian Dollar Should Outperform the Euro How Much More Can the Dollar Rise and Will It Hurt Exporters? Greenback Hits 2 Year High vs Euro; Odds Rise for Joint Rate Cuts