(Bloomberg) -- The Australian dollar rose to a 16-
year high against the yen on speculation stronger global growth
will give investors confidence to buy higher-yielding currencies
with funds borrowed in Japan, in so-called carry trades.
The local dollar is the second-biggest gainer versus the
yen in the past 12 months among the 16 most-traded currencies as
investors are attracted to Australia's 6.25 percent interest
rate, which compares with 0.5 percent in Japan. The currency
rose for a fourth day versus the yen after a U.S. non-farm
payrolls report on July 6 increased faster than expected,
suggesting global economic growth is strengthening.
Read more at Bloomberg Currencies News
year high against the yen on speculation stronger global growth
will give investors confidence to buy higher-yielding currencies
with funds borrowed in Japan, in so-called carry trades.
The local dollar is the second-biggest gainer versus the
yen in the past 12 months among the 16 most-traded currencies as
investors are attracted to Australia's 6.25 percent interest
rate, which compares with 0.5 percent in Japan. The currency
rose for a fourth day versus the yen after a U.S. non-farm
payrolls report on July 6 increased faster than expected,
suggesting global economic growth is strengthening.
Read more at Bloomberg Currencies News
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