Monday, June 25, 2007

Australian, New Zealand Dollars Drop as Carry Trades Pared on U.S. Shares

(Bloomberg) -- The Australian and New Zealand
dollars fell from the highest in around two decades on
speculation investors will pare carry trades after shares in the
U.S. slumped.

The New Zealand dollar, followed by Australia's, are the
biggest gainers among major currencies in the past year, as
traders bought higher-yielding securities with money borrowed
from nations with lower interest rates. U.S. stocks dropped for
a second day yesterday on concern over losses tied to subprime
housing loans.


Read more at Bloomberg Currencies News

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