Do we still have carry trade?

Usually "strong" currencies have high interest rates, however due to the financial crisis, JPY and CHF (yen and Swiss franc) have been behaving really good with awfully low interest rates.

If we compare two Asian currencies such as AUD (Australian dollar) and JPY, since the end of 2008 we have seen a good amount of upward movement in the Aussie due to the carry trade effect (we ask for a loan in yens with low interest rates and buy bonds in AUD with high interest rates). Probably it will continue this way until it reaches the top of the chart. The carry trade is still very alive.

21/09/2010