Carry trade
Borrowing in a low-rate currency and investing the proceeds in a high-rate one.
How to read the number
The income comes from the difference in rates and accumulates slowly, for as long as the exchange rate stays put.
When the metric lies
A turn in the rate erases what was accumulated faster than it was earned: many holders leave such positions at once, and the move feeds on itself.
Also known as: interest rate carry