Yen Drops to Record Low Against Euro as Interest Rates Spur Carry Trade

(Bloomberg) -- The yen dropped to a record low
against the euro and fell to the lowest level in more than four
years versus the dollar as global investors borrowed the nation's
currency to buy higher-yielding assets elsewhere.

Japan's lowest interest rates among major economies also
spurred the country's investors to put on the so-called carry
trades, adding to yen selling. The euro rose to a two-week high
against the dollar after European Central Bank President Jean-
Claude Trichet suggested he may extend interest-rate increases.


Read more at Bloomberg Currencies News