Wednesday, 27 June 2007

Yen Weakens on Speculation Investors Are Selling to Restore Carry Trades

(Bloomberg) -- The yen fell from a two-week high
against the dollar and euro as investors resumed sales of the
currency in search of higher returns elsewhere through so-called
carry trades.

Japan's yen snapped a three-day winning streak, declining
against 15 of the 16 most-active currencies after Bank of Japan
Governor Toshihiko Fukui said the central bank aims to adjust the
lowest interest rates among major economies at a gradual pace.
The yen dropped the most against New Zealand's dollar, where an 8
percent benchmark interest rate compares with Japan's 0.5 percent.


Read more at Bloomberg Currencies News

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