Published by Zeb BhamProfits from foreign exchange carry trades are evaporating as the difference between central banks fails to increase to compensate for currency fluctuations, according to forex strategists.Speaking to Bloomberg, Henrik Pedersen, the London-based chief investment officer at Pareto Investment Management, which oversees $45 billion in currency assets, said there is no "easy money" left in carry trades."The gains you can make on the interest-rate differentials are not going to make you 20 per cent a year, it's probably only going to make you about two or three per cent."Carry trades are a popular way to capitalise on the spread of central bank interest rates, but the convergence of rates seen in the wake of the financial crisis has made it increasingly difficult to achieve a return.In trading this morning (April 26th), the dollar moved higher against the yen, with analysts predicting that further gains will be likely while interest rate spreads remain unattractive.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site