Monday, June 18, 2007

Yen Drops to Record Low as Bank of Japan Interest Rate Spurs Carry Trades

(Bloomberg) -- The yen dropped to a record low
against the euro and sank to the weakest in more than four years
against the dollar as investors sought higher-yielding assets
funded by loans in Japan.

The Japanese currency also declined to a 15-year low versus
the British pound as the nation's lowest interest rates among
major economies encouraged the so-called carry trades. The Bank
of Japan kept borrowing costs at 0.5 percent last week and
signaled further increases will be gradual.


Read more at Bloomberg Currencies News

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