Thursday, June 7, 2007

Yen May Extend Gain Against Euro After Stock Decline Raises Risk Aversion

(Bloomberg) -- The yen may extend its advance against
the euro on speculation a sell-off in U.S. stocks will lead
investors to reduce risk.

The Japanese currency rallied against the euro and erased
losses versus the dollar as the worst three-day decline in U.S.
equities since February led investors to exit so-called carry
trades in which they buy higher-yielding assets financed by
loans in the yen. The stocks fell after benchmark Treasury yields
rose above 5 percent for the first time since August.


Read more at Bloomberg Currencies News

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