Sharp dollar carry trade unwind ruled out
As anticipation rises for the US to abandon its near-zero interest rate policy, speculation is mounting over the effect this will have on the US unit. The US Federal Reserve has maintained benchmark interest rates between 0-0.25% since December last year, positioning the US dollar to be used as a funding currency in risk rallies since March.
Ian Stannard, London-based senior currency strategist at BNP Paribas, said he expects the dollar carry trade to lose steam by the first half of next year at
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