Tuesday, 10 July 2007

New Zealand, Australian Dollars Drop Versus Yen as Investors Trim Carry

(Bloomberg) -- New Zealand's dollar fell the most
in four months and Australia's the most in two weeks against the
yen as a drop in U.S. equities prompted investors to pare assets
funded by loans in the Japanese currency.

The two currencies declined for the second day after the
Standard & Poor's 500 Index fell the most in a month on concern
mortgage defaults will worsen a U.S. housing slowdown. Japan's
0.5 percent overnight lending rate has prompted investors to
borrow yen to take advantage of New Zealand's 8 percent and
Australia's 6.25 percent rates in so-called carry trades.


Read more at Bloomberg Currencies News

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