Wednesday, June 20, 2007

Yen Drops to Near Record Against Euro as BOJ Signals Rates to Stay Low

(Bloomberg) -- The yen fell to near a record low
against the euro and declined versus the dollar after minutes
from the Bank of Japan's meeting in May said central bankers
stuck to a policy of raising interest rates ``gradually.''

The Japanese yen has weakened more than any other currency
against the euro and dollar this year as fund managers increased
investments using borrowed yen in the so-called carry trade. The
extra yield investors earn on German 10-year bonds over similar
maturity Japanese debt widened to near a three-year high.


Read more at Bloomberg Currencies News

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