Currency carry trades, in which traders borrow low-yielding currencies such as the yen or dollar to buy high-yielding currencies such as the Australian dollar, played a significant role in the credit bubble in 2004 to 2007.

Most discussion of the bubble has centred on mortgage finance and credit derivatives. However, the currency carry trade was a very significant driver of global financial imbalances, and it was the "giveaway" symptom that made the bubble obvious.