Monday, June 18, 2007

Yen Trades Near Record Low Versus Euro on BOJ Interest Rate, Carry Trade

(Bloomberg) -- The yen traded near a record low
against the euro on speculation the Bank of Japan will refrain
from accelerating interest-rate increases this year, prompting
investors to buy higher-yielding assets funded by loans in Japan.

Japan's currency sank to the weakest in more than four years
versus the dollar yesterday and a 15-year low versus the British
pound as the nation's lowest interest rates among major economies
encouraged the so-called carry trades. The yen has weakened
versus all 16 most-active currencies since the start of the year.


Read more at Bloomberg Currencies News

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