Evidence of carry trade activity

Gabriele Galati, Alexandra Heath and Patrick McGuire

BIS Quarterly Review, 2007

Abstract: Interest rate differentials have been a driving force behind exchange rate movements in recent years. This has focused market attention on the role of currency carry trade positions, and on the possibility that a sudden unwinding might adversely affect financial stability. However, carry trades are notoriously difficult to track in the available data. This special feature first outlines the investor base and trading strategies used in carry trades, and then explores various sources of data to gauge activity.

JEL-codes: F31 F32 G15 (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (125)

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Persistent link: https://EconPapers.repec.org/RePEc:bis:bisqtr:0709e

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