Thursday, June 21, 2007

Yen Weakens to 4 1/2-Year Low Against Dollar as Carry Trade Gains Appeal

(Bloomberg) -- The yen fell to a 4 1/2-year low
against the dollar as investors borrowed Japan's currency to buy
higher-yielding assets in the U.S., Britain and New Zealand in
so-called carry trades.

The currency this week reached a record low versus the euro,
the weakest since September 1992 against the pound and a two-
decade low versus New Zealand's dollar. Japanese Finance
Minister Koji Omi told reporters that policy makers will
``carefully watch'' the currency market.


Read more at Bloomberg Currencies News

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