Yen Carry Trade During the Recession The yen carry trade with the U.S. dollar took a brief hiatus in 2008. The Federal Reserve dropped the fed funds rate to near zero to fight the Great Recession. The yen carry trade shifted to high-yield currencies such as the Brazilian real, Australian...
Schnider explained how CHF and JPY tend to benefit from falling rates, particularly since these currencies are among the most reactive to US rate changes. For UBS, the Swiss franc has been their primary focus. In light of the current market conditions Schnider stated, “we played...