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Creative Carry Traders Turn to Low-Yield Asian Currency Funders

  • Taiwan, Singapore dollars seen as good funding sources
  • BNP Paribas Asset favors the shekel to fund carry trades
Updated on

Traders are getting creative in their pick of currencies to fund carry trades as conventional choices such as the dollar, euro and yen lose their luster.

Goldman Sachs Group Inc. and RBC Capital Markets are highlighting low-yielding Asian currencies such as the Taiwan dollar and South Korean won as increasingly attractive funding sources for emerging-market carry traders. SPI Asset Management is also going with the Taiwan dollar, while BNP Paribas Asset Management is turning to the Israeli shekel.