Carry traders increase bets on emerging markets as expectations of a Fed rate cut grow
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最新报道：According to a report by Coinnet, carry trades are making a comeback among emerging market investors, fueled by bets that the Federal Reserve will begin cutting interest rates next month, weakening the dollar and boosting interest in high-yielding currencies. Asset managers from Neuberger Berma to Aberdeen Group are increasing their exposure to currencies such as Brazil, South Africa, and Egypt. They believe a weaker dollar and reduced volatility create a fertile environment for this strategy, in which traders borrow lower-yielding currencies and buy higher-yielding ones. Earlier this year, these trades generated double-digit returns, but the trend took a pause in July as the dollar rebounded. Recent poor US jobs data has reinforced expectations that policymakers will be forced to cut interest rates next month to avoid a recession, fueling a resurgence in carry trades. Many institutions, from DoubleLine to UBS, have recently joined the bearish chorus on the dollar, stating that "the bearish narrative surrounding the dollar has resurfaced." “The likelihood of a significant dollar rebound is very limited, while overall global growth remains solid,” said Urquieta, co-head of emerging market debt at Neuberger Berman. He prefers carry trades in South Africa, Turkey, Brazil, Colombia, Indonesia and South Korea.
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