Resurgent Carry Counts Won as Top Trade on Rate Bets: Currencies
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The prospect of South Korea’s first interest-rate increase since 2011 is giving the won the world’s best returns in a resurgent market for carry trades.
Purchasing the won using funds borrowed in dollars earned 4.4 percent this quarter through yesterday, while deals paid for in yen made 3 percent, in both cases the biggest gains among 44 currencies. More than half of 27 economists surveyed by Bloomberg expect the Bank of Korea to lift rates this year.