4min chapter

Forward Guidance cover image

Why Inflation Will Dissipate | Bilal Hafeez

Forward Guidance

CHAPTER

The Power of Carry in Currency Trading

If carry were the only thing, then the real should appreciate against the dollar. But obviously, there are other factors. The level of interest rates and the carry is a big driver of currencies. Expected strong returns in the equity market are one. And we've seen that with Turkey where the central bank has basically said even though we have high inflation, we're going to let it rip.

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