The big ‘carry trade’ unwind is far from over, strategists warn

From cnbc.com

It’s too early to give the all-clear to the rapid unraveling of “carry trades,” strategists have said, warning investors that the unwind may still have further room to run. Carry trades refer to operations wherein an investor borrows in a currency with low interest rates, such as the Japanese yen, and reinvests the proceeds in higher-yielding assets elsewhere. The foreign exchange strategy has been hugely popular in recent years, particularly as investors expected the Japanese yen to remain cheap and for Japanese interest rates to remain low. However, the yen-funded carry trade began aggressively unwinding last ... (full story)