End of cash and carry?

Currency markets have merely wobbled in the earthquake currently hitting credit and stocks. But foreign exchange could soon suffer from its own tectonic shifts. For the last few years, forex traders have had a pretty simple life. Just borrow in low-interest-rate currencies - particularly the yen and Swiss franc - and lend in currencies that offered high rates, for example New Zealand, Australia and the UK. And the dollar has been held back by US traders selling the greenback to fund currency spr...