Funding Currency

Dictionary Says

Definition of 'Funding Currency'

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 short positions in currencies with higher interest rates.
Investopedia Says

Investopedia explains 'Funding Currency'

The Japanese yen has historically been popular as a funding currency among forex traders because of its low interest rate. For example, a trader will borrow Japanese yen and purchase a currency with a higher interest rate, such as the Swiss franc.

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'Funding Currency'

  • The US Dollar And The Yen: An Interesting Partnership

    http://www.investopedia.com/articles/forex/09/japanese-yen-us-treasury-bonds.asp
    ... appreciate, a long position. This is due to the yen's status as the premiere
    funding currency. Selling a lower-yielding currency ...
  • Currency Carry Trades 101

    http://www.investopedia.com/articles/forex/07/carry_trade.asp
    ... Mechanically, putting on a carry trade involves nothing more than buying a high
    yielding currency and funding it with a low yielding currency, similar to the ...
  • What currency is affected by the interest rate decisions of the ...

    http://www.investopedia.com/ask/answers/09/currency-affected-by-BOE.asp
    ... decrease the supply of available bank loans needed for commercial or private funding. ...
    Valuations are highly dependent on currency flows, such as when the Bank ...
  • 6 Currencies With A Bright Future - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1211/6-Currencies-With-A-Bright-Future.aspx
    ... with the country's current debt-to-GDP ratio standing at 200% it is considered to
    be the best safe-haven currency. This is because Japan is funding its own debt ...
  • Managing Currency Exposure In Your Portfolio

    http://www.investopedia.com/articles/basics/12/portfolio-currency-exposure.asp
    ... that exchange rate fluctuations have with asset returns, investors are better able
    to evaluate the currency exposure of ... 5 Ways To Get Venture Capital Funding. ...
  • Currency Swap Basics

    http://www.investopedia.com/articles/forex/11/introduction-currency-swaps.asp
    ... See Investing In China.) Setting Up the Currency Swap Based on the companies ... and
    that both Companys require the same equivalent amount of funding, the Brazilian ...
  • Hedging With Currency Swaps

    http://www.investopedia.com/articles/forex/11/hedging-with-currency-swaps.asp
    ... of modifications to currency swap agreements are usually based on the demands of
    the individual parties in addition to the types of funding requirements and ...
  • Currency Moves Highlight Equity Opportunities

    http://www.investopedia.com/articles/forex/07/equities-currency.asp
    ... In 2007, you can see many currency pairs that can be categorized as carry trades ...
    50 basis points in 2007, the yen became an extremely cheap funding vehicle, not ...
  • Introduction To Currency Futures

    http://www.investopedia.com/articles/forex/10/introduction-currency-futures.asp
    ... opportunity. Read More »; Corporate Currency Risks Explained. Transaction ... manager.
    Read More »; 5 Ways To Get Venture Capital Funding. Crowdfunding ...
  • Tiger Trading: Long-Term Charts For Short-Term Currency Trades

    http://www.investopedia.com/articles/forex/11/long-term-currency-trading-strategy.asp
    ... opportunity. Read More »; Corporate Currency Risks Explained. Transaction ... better ...
    Read More »; 5 Ways To Get Venture Capital Funding. Crowdfunding ...

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