Home / Business and Economy / Yen's Rise Shifts Carry Trade Focus to Franc, Krona
Yen's Rise Shifts Carry Trade Focus to Franc, Krona
16 Sep
Summary
- Yen's surge makes it a less reliable currency for carry trades.
- Swiss franc and Swedish krona are now prime candidates for carry trades.
- Monetary policy divergence is cited as a reason for favoring the franc.
Currencies such as the Swiss franc and Swedish krona are increasingly being eyed as ideal vehicles for carry trades. This strategic shift follows a recent surge in the Japanese yen, which has rendered it a less dependable option compared to its historical performance.
Major financial entities, including Russell Investments and Allianz Global Investors, have expressed a preference for the Swiss franc. This inclination is attributed to a growing divergence in monetary policies between Switzerland and other key economies, creating new opportunities for currency traders seeking stable funding currencies.
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