Tuesday, June 19, 2007

Yen Is Little Changed as Muto Says Bank of Japan to Raise Rates Gradually

(Bloomberg) -- The yen was little changed after Bank
of Japan Deputy Governor Toshiro Muto signaled the central bank
will raise interest rates as wages and prices gradually increase.

Japan's currency traded near an all-time low against the
euro and a 4 1/2-year low versus the dollar as investors borrow
yen at the lowest rates in the industrialized world to fund
purchases of higher-yielding assets, known as carry trades.
Minutes released today from BOJ meetings in April and May showed
policy makers agreed that rates can be raised gradually.


Read more at Bloomberg Currencies News

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