Australian Dollar May Decline as Investors Shun Higher Yielding Assets

(Bloomberg) -- The Australian dollar may drop from
an 18-year high after a slump in U.S. shares spurred concerns
investors will pare carry trades.

The trades, purchases of higher yielding securities with
money borrowed from nation's with lower interest rates, have
helped propel the Australian dollar more than 7 percent this
year against the U.S. currency. Australia's 6.25 percent rate
compares with 5.25 percent in the U.S. and 0.5 percent in Japan.


Read more at Bloomberg Currencies News