Tuesday, June 19, 2007

Bank of America Says Yen May Rise to 118 by Year-End as Carry Trades Fade

(Bloomberg) -- The yen will strengthen 4.5 percent
against the dollar by year-end as a Bank of Japan interest-rate
increase will discourage investors from borrowing the currency
to buy higher-yielding assets, said Bank of America N.A.

The currency will appreciate after an August rate increase
and reach 118 per dollar as so-called carry trades fade, said
Tomoko Fujii, head of economics and strategy in Tokyo.


Read more at Bloomberg Currencies News

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