Financial Times FT.com

Falling US rates raise carry trade questions

By Peter Garnham

Published: October 29 2007 21:26 | Last updated: October 29 2007 21:26

Is the dollar set to join the yen and the Swiss franc as a carry trade funding currency?

Both the yen and Swiss franc have been pushed to multi-year lows this year as carry trade investors have sold the low-yielding currencies to fund the purchase of riskier, higher-yielding assets elsewhere.

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