Wednesday, June 6, 2007

Yen May Extend Gains Against Dollar, Euro as Investor Risk Aversion Rises

(Bloomberg) -- The yen may rise against the dollar
for a fourth straight day and gain versus the euro amid concern
about declining U.S. stocks and rising Japanese bond yields.

Japan's currency advanced yesterday from a record low versus
the euro as investors exited so-called carry trades in which they
buy higher-yielding assets financed by loans in yen. The yield on
Japan's two-year government notes rose yesterday above 1 percent
for the first time in a decade on speculation the Bank of Japan
will boost interest rates further this year.


Read more at Bloomberg Currencies News

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