A little more than two years ago, the Icelandic Kronur was one of the hottest currencies in the world. Thanks to a benchmark interest rate of 18%, the Kronur had particular appeal for carry traders, who worried not about the inherent risks of such a strategy. Shortly thereafter, the Kronur (as well as Iceland’s economy [...]
Source: http://www.forexblog.org/2011/04/icelandic-kronur-lessons-from-a-failed-carry-trade.html
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