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Analysis-Dollar slump, overcrowding complicate popular FX carry trade

A slide in the dollar and signs that volatility is returning to foreign exchange markets as interest-rate hikes bite is causing investors to reassess wildly popular carry trades and to be pickier about which currencies they back. The carry trade - an investment strategy that takes advantage of differences in borrowing costs between countries - has provided bumper returns this year as most central banks have hiked rates, causing yields to rise, but at different paces. "The world's favourite carry trade," according to Bank of America, involves investors borrowing Japanese yen where the central bank has pinned rates low, and converting them to Mexican peso to buy much higher-yielding bonds. ....

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Dollar slump, overcrowding complicate popular FX carry trade

A slide in the
dollar and signs that volatility is returning to foreign
exchange markets as interest-rate hikes bite is causing
investors to reassess wildly popular carry trades and to be
pickier. ....

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Stocks lifted to month high by U.S. debt ceiling hopes

Europe's STOXX 600 was up 0.7%, while e-mini futures for the S&P 500 rose 0.2%, following a 0.9% gain for the benchmark Wall Street index overnight ....

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Stocks reach one-month high on U.S. debt ceiling hopes

(Updates with European opening prices)

LONDON, SINGAPORE May 19 (Reuters) -
Global shares rose to a one-month high and the dollar
trounced major currencies on Friday as markets reflected
increased . | 03:55am ....

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Shares waver as rate pause bets and Apple earnings clash with U.S. bank rout

Shares waver as rate pause bets and Apple earnings clash with U.S. bank rout
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