Tuesday, 22 May 2007

Yen Near 3-Month Low Versus Dollar as BOJ Signals Interest Rates on Hold

(Bloomberg) -- The yen traded near a three-month low
against the dollar as policy meeting minutes indicated the Bank of
Japan plans to keep interest rates unchanged in coming months.

The Japanese currency slid for a second day versus the dollar
as investors returned to the so-called carry trade, borrowing in
Japan, where the benchmark rate is 0.5 percent, to invest in the
U.S. and Europe. The euro also approached a five-week low against
the dollar on speculation prices already reflect the interest-rate
outlook in the euro region.


Read more at Bloomberg Currencies News

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