Thursday, May 24, 2007

Yen Gains Most In a Week in Two Months on Inflation Data, Asia Stock Slump

(Bloomberg) -- The yen headed for the biggest weekly
gain against the euro in more than two months as Japanese
inflation data and a slump in Asian stocks prompted traders to
pare investments in higher-yielding assets.

The yen advanced versus 13 of the 16 most-active currencies
as a slower decline in consumer prices supported the central
bank's case for higher interest rates. The currency traded near a
two-week high to the euro as investors reduced so-called carry
trades, in which they borrow in Japan to buy securities with
better returns overseas.


Read more at Bloomberg Currencies News

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