Currency Volatility Damps Asian Carry Trade Appeal Despite Higher Returns

2 articles · Updated · Bloomberg · Apr 13

Rising currency volatility in emerging Asia is undermining the appeal of carry trades, despite returns reaching their highest levels in nearly four years.
Elevated oil prices and expectations of central bank rate hikes are driving up implied yields, but sharp spot market swings threaten to erase gains.
Analysts suggest focusing on currencies with stronger fundamentals, as geopolitical uncertainty and inflation risks persist in the region.

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