Friday, July 13, 2007

Risk appetite revives yen-funded carry trades

(Reuters) - The yen hit a record low against the euro on Friday, weighed down by the prospect of Japanese interest rates staying ultra low for some time, leaving the yen as a cheap source of borrowing for purchases of higher yielding currencies.

Abating concerns about troubles in the U.S. subprime mortgage market spilling over into slower U.S. economic growth helped support the dollar and heaped further pressure on the yen, breathing fresh life into flagging risk appetite.


Read more at Reuters Africa

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