(Bloomberg) -- The Australian dollar may gain on
demand for so-called carry trades, where investors buy higher-
yielding assets with money borrowed in countries where interest
rates are lower.
The currency traded near a 15-year high against the yen as
Australia's 6.25 percent rate compares with the 0.5 percent cost
of borrowing in Japan. Australia's dollar may gain support after
China, the nation's second-largest export market, on May 18
widened the yuan's daily trading limit and raised rates in a move
aimed at sustaining its pace of economic growth.
Read more at Bloomberg Currencies News
demand for so-called carry trades, where investors buy higher-
yielding assets with money borrowed in countries where interest
rates are lower.
The currency traded near a 15-year high against the yen as
Australia's 6.25 percent rate compares with the 0.5 percent cost
of borrowing in Japan. Australia's dollar may gain support after
China, the nation's second-largest export market, on May 18
widened the yuan's daily trading limit and raised rates in a move
aimed at sustaining its pace of economic growth.
Read more at Bloomberg Currencies News
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