Swiss Franc Gets Bet-Against Label for Carry Trades
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The Swiss franc is offering carry traders some of the best returns in developed markets as forecasts it will depreciate faster than the yen boost its appeal as a funding currency.
The franc will post the world’s biggest loss against the dollar this year, falling 7.2 percent to 98 centimes, from 90.94 at 4:41 p.m. in London, according to the median estimate of more than 40 analysts surveyed by Bloomberg. In carry trades, investors buy higher-yielding assets funded by currencies with lower borrowing costs. A decline in the funding currency adds to the return from the interest-rate differential.