Carry Trade Revival That Electrified EM Spurs Optimism for 2026
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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Vandenhoeck is bullish on the Brazilian real, Turkish lira and South Africa’s rand, among other currencies. Big investors say that carry trades across emerging markets have further to run in 2026 following a blockbuster year for the popular strategy. Ebbing volatility in foreign exchange markets and a weak US dollar provided fertile ground for the trade, where investors borrow in low-yielding currencies to buy those offering a higher payout. One Bloomberg measure of the strategy has returned some 17% this year, the biggest gain since 2009.