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Central Missouri | To do the carry trade you borrow dollars at very low interest rates and sell them to buy stuff. The selling of those dollars is what is contributing to the declining dollar. The buying of the stuff is contributing to the increase in the stock market and commodity prices.
If interest rates rise the theory goes that the carry traders will then sell the stuff and pay back the borrowed dollars. Thus stuff goes down and dollar goes up. | |
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Interesting Gold Numbers
