The speculative element of the carry trade is that its success is based upon a belief that:

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A kind of speculation that has become more common in recent years is known as the carry trade. The carry trade involves borrowing in one currency where interest rates are low and then using the proceeds to invest in another currency where interest rates are high. The speculative element of the carry trade is that its success is based on a belief that there will be no adverse movement in exchange rates (or interest rates for that matter) that will make the trade unprofitable.

The Speculative Element of the Carry Trade Is That Its