vf what does yen carry trade mean in finance and investing

Yen carry trade

Yen carry trade refers to an investment strategy where investors borrow the Japanese Yen when its at its lowest and then convert it to US dollars with a higher interest rate. The result is that the interest rate from US bonds cancels the effect of the interest rate from the loan which is in Japanese Yen. However once the Yen strengthens, the carry trade will no longer be profitable.

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