(Bloomberg) -- The yen and Swiss franc weakened on
expectations rising global interest rates will spur investors to
borrow in Japan and Switzerland and buy higher-yielding assets
elsewhere.
The currencies slid after New Zealand unexpectedly raised
rates and the European Central Bank lifted its benchmark to a
six-year high. Japan and Switzerland have the lowest borrowing
costs among major economies. Steen Elverdal, managing director of
hedge-fund Hamton Asset Management Ltd., said he uses Swiss
francs to fund European investments that have higher yields.
Read more at Bloomberg Currencies News
expectations rising global interest rates will spur investors to
borrow in Japan and Switzerland and buy higher-yielding assets
elsewhere.
The currencies slid after New Zealand unexpectedly raised
rates and the European Central Bank lifted its benchmark to a
six-year high. Japan and Switzerland have the lowest borrowing
costs among major economies. Steen Elverdal, managing director of
hedge-fund Hamton Asset Management Ltd., said he uses Swiss
francs to fund European investments that have higher yields.
Read more at Bloomberg Currencies News
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