The risk appetite sensitivity has moved from looking at credit spread risk curves and volatility to viewing emerging market currency and debt as a substitute for equity, a high beta stock. The market has now moved to using equity returns as the measure of risk appetite. So we have events like today when there is a huge jump in Korean won based on the spike in equities and some positive news in Japan. The assumption that there is a strong correlation between a Japan recovery and a similar surge in Korea.
Carry used to be for buy and hold investors who wanted to creates gains in currency trading. Carry may be back but for these who are nimble traders.