Friday, 20 July 2007

Yen Erases Declines Versus Euro, Dollar as Stock Futures Signal Lower Open

(Bloomberg) -- The yen erased a decline versus the
euro and dollar as futures on U.S. stock indexes fell, a sign
investors are pulling back from risky bets.

Investors who are less inclined to take risks may exit so-
called carry trades, where they borrow at Japan's low interest
rates to buy higher-yielding securities elsewhere. The Japanese
currency also dropped earlier after China raised rates to cool
economic growth, prompting speculation demand for Japanese
exports in its third-largest market will slow.


Read more at Bloomberg Currencies News

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