Thursday, June 14, 2007

Yen Heads for Weekly Loss as Fukui May Signal Only Gradual Rate Increases

(Bloomberg) -- The yen headed for a weekly loss on
speculation Bank of Japan Governor Toshihiko Fukui will signal
plans to raise the overnight lending rate gradually after
leaving it unchanged today.

The yen traded near a 4 1/2-year low against the dollar as
the lowest borrowing costs in the industrialized world spur
investors to take out loans in Japan and buy higher-yielding
assets in so-called carry trades. Fukui will speak today after
policy makers unanimously decided to keep the benchmark rate at
0.5 percent for a fifth meeting.


Read more at Bloomberg Currencies News

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