The carry trade is making a comeback after its longest losing streak in three decades.
Stimulus plans and near-zero interest rates in developed economies are boosting investor confidence in emerging markets and commodity-rich nations with interest rates as much as 12.9 percentage points higher. Using dollars, euros and yen to buy the currencies of Brazil, Hungary, Indonesia, South Africa, New Zealand and Australia earned 8 percent from March 20 to April 10, that trade’s biggest three-week gain since at least 1999, data compiled by Bloomberg show.
We can’t wait till Iceland’s króna trade fires up again!
Carry Trade Comeback Means Biggest Gains Since 1999 [Bloomberg]
well don’t hold your breath waitng for that one — the exchange controls in old Iceland aren’t going anywhere soon. Even some talk about them adopting the Norwegian kronur, which is actually a half way decent currency
http://dealbreaker.com/2007/07/when-hedge-fund-losses-hit-hom.php