EXPLAINER: What is the yen carry trade?

With the recent surge in Japan's currency to a seven-month high, investors are wondering if this is the beginning of the end of the yen carry trade that has been a pillar of global markets.That trade, which involves borrowing yen at a low cost to invest in higher-yielding assets, is being undermined by expectations of accelerated rate hikes by the Bank of Japan, as early as its meeting next week.Here is a deeper look at the yen carry trade.HOW DOES THE CARRY TRADE WORK?The strategy involves borrowing the yen, or any other currency with similarly low interest rates, then using it to buy …READ FULL ARTICLE