Wednesday, June 6, 2007

Yen Strengthens Against Euro as Drop in Stock Markets Fuels Risk Aversion

(Bloomberg) -- The yen advanced for a third day
versus the euro as declines in global stock markets caused
investors to sell higher-yielding assets they bought with money
borrowed in Japan.

Japan's currency yesterday gained the most in almost two
weeks after the Dow Jones Industrial Average had the biggest drop
in almost a month, prompting traders to pare so-called carry
trades. European equity markets slid the most in two months on
concern the central bank will add to yesterday's quarter point
interest-rate increase.


Read more at Bloomberg Currencies News

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