21.01.2013 - Investors look for carry in emerging-market currencies
The carry trade is alive and well, at least in emerging-market currencies. As safe-haven currencies in the developed world such as the Swiss franc and the Japanese yen begin to depreciate, investors are using them to fund positions in higher-yielding currencies such as the Russian ruble and Mexican peso. The strategy didn't work particularly well in emerging-market currencies last year. But the lag in their appreciation compared with the gains posted by advanced-economy currencies--such as the euro and the Australian dollar, which benefited as fears of a European sovereign crisis faded--could in itself be a reason for these currencies to rally this year...............................................Full Article: Source
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