the dollar carry trade is where investors borrow money from one country at low interest rates and invest that money in another country where that money will get a higher yield.
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“Roubini Not Alone in Fearing Dollar Carry Trade
Tuesday, 27 Oct 2009 | Source: CNBC.com
When Dr Doom says the dollar carry trade is about to come to an end and the greenback will soar as equities crash you have to, at the very least, take his predictions seriously. His view is based on the assumption that there is a so-called ‘Wall of Money’ driving recent equity gains and other assets like gold and oil.”
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