Monday, 09 July 2007

Yen Drops as Advance in Asian Stock Markets Spurs Increase in Carry Trades

(Bloomberg) -- The yen fell to a record low against
the euro and dropped for a fifth day versus the dollar as a rally
in Asian stocks gave investors more confidence to buy higher-
yielding assets with money borrowed in Japan.

The currency also slid to a 16-year low against the
Australian dollar, taking losses in the past year to 13 percent,
as investors increased so-called carry trades. A stronger-than-
expected U.S. employment report added to optimism global economic
growth will be sustained, increasing the appetite of fund
managers for riskier assets.


Read more at Bloomberg Currencies News

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