NEW YORK: A doubling in currency volatility since June has knocked the “carry trade” off its perch as the most profitable strategy in foreign exchange, hurting investors from John W. Henry & Co to Campbell & Co.
In one of the more popular carry trades, a US investor who borrowed in yen to buy high-yielding Australian dollars enjoyed a return of 11% this year through June 5, data compiled by Bloomberg show. The gains have since been wiped out.
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