[Morgan Stanley and Bank of America Optimistic About Emerging Market Carry Trades, Last Year's Returns Hit Strongest Since 2009] According to a report by Jinse Finance, at the start of 2026, investors who sold the U.S. dollar to buy emerging market currencies have reaped significant gains. Strategists at top banks predict that this strategy, which surged 18% last year, still has room for further growth. Based on a Bloomberg index tracking the returns of eight emerging markets, carry trades — a strategy of borrowing low-interest-rate currencies to buy high-interest-rate currencies — have risen 1.3% so far this year. With U.S. President Donald Trump's policies putting heavy pressure on the U.S. dollar, strategists from Morgan Stanley, Bank of America, and Citigroup believe last year's returns are likely to continue; last year's returns were the highest since 2009.