Currency Carry Trade Losses Exceeding Lehman May Bolster $

[BoyRacer]

Currency Carry Trade Losses Exceeding Lehman May Bolster Dollar → bloomberg.com/news/2011-01-0 … rally.html

Currency traders that seek profits by borrowing in nations with low interest rates to fund purchases in countries with higher yields are losing more money than at any time in at least a decade.

**The strategy lost 2.5 percent in 2010 as the dollar – a favorite for financing the trades because of record low U.S. rates – appreciated, according to an index compiled by UBS AG, the world’s second-largest foreign-exchange trader. **That’s more than the 0.98 percent drop in 2008 when the collapse of Lehman Brothers Holdings Inc. caused credit markets to freeze and the worst performance for so-called carry trades since at least 1999 when UBS began releasing yearly figures.

there is more