(Bloomberg) -- The Australian and New Zealand dollars dropped the most in three weeks against the yen after demand for services in Japan rose to a record and central bank Governor Toshihiko Fukui said consumer spending was solid.
Fukui's comments followed the government report and suggest he wants to raise interest rates, which would reduce Australia's 5.75 percentage point rate advantage and New Zealand's 7 point premium. Australia's dollar reached a decade high against the yen yesterday and New Zealand's currency touched the most in 17- years on optimism they were benefiting from so-called carry trades, where traders borrow and sell yen to invest in higher- yielding assets elsewhere.
Read more at Bloomberg Currencies News
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