CURRENCIES: Carry-Trade Oriented

By Staff Reporters

DEFINITION

SPONSOR: http://www.MarcinkoAssociates.com

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Carry-Oriented Currencies are higher-yielding currencies of countries where interest rates are generally higher than those of countries with lower-yielding currencies.

These higher-yielding currencies are targeted for “carry trades,” where investors borrow money in a low-interest rate currency and invest in a higher yielding currency, potentially profiting from the difference in interest rates.

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