MARKET MOVES

'It's a Carry World': EM trade notches longest run since 2008

2026-08-24·Economic Times·Impact 3/5 · Notable

MeridStreet AI summary

The carry trade in emerging markets has now run for its longest period since 2008, a trend that is attracting significant attention from investors. This strategy involves borrowing in low-interest currencies and investing in higher-yielding emerging markets, where returns are currently high. The US dollar's weakening against many emerging market currencies has made this approach more appealing, leading to substantial gains for investors.

Source reporting

Read the source report: Economic Times →

MeridStreet analysis

Why it matters

The carry trade in emerging markets is leading to remarkable returns for investors. This could lift investor sentiment and pull in foreign capital.

Market impact

Impact score

3 / 5

Market signal

Positive / risk-on

Transmission channels

EM trade growth→Foreign capital inflows→Higher risk appetite→EM assets rise→Safe-haven assets weaken

Likely winners & losers

Winners

EM equities
High-yield bonds

Under pressure

Safe-haven assets

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MeridStreet does not reproduce source articles. The summary and analysis above are generated by MeridStreet from public headlines and its own market model; the original reporting belongs to Economic Times. For information only — not financial advice.