This May Be the Best Carry Trade in Currency Markets
- Exports show signs of recovery while growth forecast is raised
- Taiex Index hits 21-month high supported by fund inflows
Taiwanese one dollar coins.
Photographer: Billy H.C. Kwok/BloombergThis article is for subscribers only.
Looking for the best carry trade in currency markets? The Taiwan dollar leads the pack.
With global currency volatility near a three-month low, conditions are supportive for carry trading in emerging currencies from the Brazilian real to the Thai baht and Russian ruble. The Taiwan dollar trade has outperformed this year, defying concerns that U.S. President Donald Trump may impose protectionist policies that hurt the island’s exports, which are critical to its economy. Overseas shipments have actually been growing. Taiwan also recently raised its 2017 economic growth forecast, and its financial markets are sizzling.