One of the most popular trades in foreign-exchange markets is losing its luster as the Bank of Japan signals the end of its negative interest rate policy. The appeal of using borrowed yen to buy securities denominated in higher-yielding currencies — known as a carry trade — is starting to fade for money managers who see remarks from the BOJ’s Hajime Takata as the precursor of a policy change. While the yen-funded bet handed investors returns of more than 35% against the Colombian, Chilean and Mexican pesos last year, it’s up only 4.5% so far in 2024. The loss of momentum comes as traders weigh a potential narrowing ... (full story)