About

• A carry trade is an investment strategy that’s most often associated with foreign currency trading: An investor will borrow money in one currency at a low interest rate (such as Japanese yen or Swiss franc) and invest in a currency that has a higher interest rate (such as Mexican peso or, U.S. dollar), making a return that’s roughly equivalent to the difference between the two rates.
• It has boomed in popularity as interest rates have diverged around the world.