Forex swings will upend lucrative yen carry trade

News Snapshot:

HONG KONG, Dec 1 (Reuters Breakingviews) - Foreign exchange investors have been enjoying a quiet, rich life. Predictable monetary policies have made it easy to borrow yen and invest it in U.S. dollar assets and those of other countries where interest rates are high. But as central banks start moving in the opposite direction, those “carry trades” will become a lot riskier. In recent decades, Japan has been a graveyard for investors looking for domestic returns. Notably those who bet against its government bonds in a trade so bad it became known as the “widow maker”. Foreign exchange traders beg...