This year’s decline in the U.S. dollar is drawing investors back into a practice that they had eschewed for some years: Borrowing the greenback to buy riskier assets in what is known as a carry trade. A number of investors are pursuing higher returns by buying overseas assets. Investment firm Ashmore Group, for instance, sold the dollar to add local-currency government bonds from Mexico, Indonesia and Brazil to its portfolios, according to Jan Dehn, head of research.

Source: Wall Street Journal September 30, 2020 10:07 UTC