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Goldman Sachs Says the Carry Trade Is Back — and Bigger Than Ever

MarketWatch.com·Saturday, 11 July 2026
Goldman Sachs Says the Carry Trade Is Back — and Bigger Than Ever

Goldman Sachs says the currency carry trade — where investors borrow in low-interest currencies to invest in higher-yielding ones — has made a big comeback and is larger than it has been in many years. This is the same trade that caused a massive market blowup in 2024.

Why It Matters

India is often a destination for carry trade flows because of its relatively higher interest rates, meaning a sudden reversal could hit Indian markets hard, just as it did in 2024.

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