The income or cost associated with keeping a foreign exchange position overnight. This is derived when the currency pairs in the position have different interest rates for the same period of time.
Since cutting policy interestrates to almost zero in late 2008, the Fed has more than tripled the size of its balance sheet via a campaign of massive bond purchases to hold down long-term borrowing
The Bank of Japan ended a policy meeting on Wednesday with no change to its strategy of doubling the monetary base for the sake of reaching a 2 percent inflation target and jolting the economy out of two decades of stagnation.
The government had cut tax rates for foreign investors on interest income from government and corporate debt for the June 1, 2013 and May 31, 2015 period.
