Winston
30-09-09, 09:31 PM
Who Loves the Weak Dollar? Currency Traders.
"The trade in question is known as the "dollar carry trade" because it allows traders to borrow dollars at low rates while investing in another currency that offers a significantly higher short-term yield. One factor behind its growing popularity in Asia is because the other side of the trade — the currency one buys with the dollars one cheaply borrows — are mostly to be found in the Asia-Pacific region. Most coveted, according to traders, are the Australian dollar, the Indonesian rupiah, and even the infrequently circulated Sri Lankan rupee."
Time Magazine - http://www.time.com/time/business/article/0,8599,1926829,00.html?xid=rss-business
"The trade in question is known as the "dollar carry trade" because it allows traders to borrow dollars at low rates while investing in another currency that offers a significantly higher short-term yield. One factor behind its growing popularity in Asia is because the other side of the trade — the currency one buys with the dollars one cheaply borrows — are mostly to be found in the Asia-Pacific region. Most coveted, according to traders, are the Australian dollar, the Indonesian rupiah, and even the infrequently circulated Sri Lankan rupee."
Time Magazine - http://www.time.com/time/business/article/0,8599,1926829,00.html?xid=rss-business