Markets | JPMorgan Says ‘The Golden Year’ for Carry Trades Nears Its End

Traders will need to write a new playbook soon as the days of one of the year’s best-performing foreign exchange strategies are numbered, according to JPMorgan Chase & Co.

This year currency speculators piled into carry trades — in which they borrow low-yielding currencies in order to purchase higher-yielding alternatives — earning some of the strategy’s best returns in decades as global central banks continued an aggressive pace of rate hikes in the face of mounting inflation.