(Bloomberg) — Asia’s best carry trade is suddenly in Hong Kong, where the local dollar has strengthened to an almost three-year high.Elevated local rates are increasing the appeal of owning the city’s currency, after years of depreciation wagers. Selling the greenback and using the proceeds to buy Hong Kong dollars has delivered Asia’s highest Sharpe ratio — a measure of returns adjusted for price swings — over the past month.The sustained strength has much to do with expectations that liquidity conditions will remain tight, keeping funding costs for the local dollar high versus those on the greenback. Traders unwinding their …read more
Source:: Yahoo Finance
