Exchange Currency

funding currencies

In a currency carry trade, the currency which is exchanged in return for another. In a yen carry trade, the Japanese yen is the funding currency. A funding currency usually has low interest rates; the Japanese yen and Swiss franc have been the most commonly used currencies for this purpose due to their significantly lower interest rates.

Related information about funding currencies:
  1. What is funding currencies? definition and meaning
    Definition of funding currencies: In a currency carry trade, the currency which is exchanged in return for another. In a yen carry trade, the Japanese yen is the ...
     
  2. Funding Currencies Definition | Investopedia
    Monies that can be borrowed at low interest rates, making them ideal to bankroll purchases of higher yielding assets including stocks, other currencies, bonds ...
     
  3. Funding Currency Definition | Investopedia
    The currency being exchanged in a currency carry trade. A funding currency typically has a low interest rate. Investors borrow the funding currency and take ...
     
  4. IMM Positioning - Carry And Funding Currencies Alike Gain At ...
    Oct 1, 2012 ... IMM Positioning - Carry And Funding Currencies Alike Gain At Expense Of USD The short EUR unwind continued last week with the number of ...
     
  5. Analysis: Dollar becomes funding currency as yields tumble | Reuters
    Aug 20, 2010 ... Analysts at RBC Capital Markets compile a "carry value barometer," which ranks funding currencies, using option prices and measuring yield ...
     
  6. Euro's role changing to funding currency - The Tell - MarketWatch
    Jan 6, 2012 ... The EUR moving from the 'bloc of asset' currencies towards the 'bloc of funding' currencies [and this] suggests to us that this time there may be ...
     
  7. 5 Carry Trades and Currency Crashes - NYU Stern School of ...
    selling low interest rate currencies—“funding currencies”—and invest- ... ment currencies and lower returns for funding currencies, and control- ling for VIX ...
     
  8. Euro Becomes Increasingly Popular Choice to Fund Carry Trades ...
    Dec 21, 2010 ... The euro's struggles could become more pronounced in coming months as traders increasingly use the beleaguered currency to fund so-called ...