Carry traders ramp up bets in EMs as Fed rate cuts loom

Carry trade gains traction as investors eye emerging markets. Expectations of Federal Reserve rate cuts weaken the dollar. Money managers are investing in currencies of Brazil, South Africa, and Egypt. A weaker dollar and easing volatility create favorable conditions. The trade paused in July but is now reviving. Dismal US jobs data fuels bets on lower borrowing costs.

from Economic Times https://ift.tt/xLXIbqU