(Bloomberg) -- The Australian dollar fell from an
18-year high against the U.S. currency on speculation investors
will reduce holdings of higher-yielding assets as Asian stocks
followed U.S. equities lower.
Australia's currency also dropped for a third day versus the
yen as investors pared so-called carry trades, where they buy
higher-returning assets with money borrowed in countries with
lower interest rates. The local dollar has made the second-
biggest gain among major currencies in the past year because of
Australia's 6.25 percent benchmark rate, which compares with
Japan's 0.5 percent and 5.25 percent in the U.S.
Read more at Bloomberg Currencies News
18-year high against the U.S. currency on speculation investors
will reduce holdings of higher-yielding assets as Asian stocks
followed U.S. equities lower.
Australia's currency also dropped for a third day versus the
yen as investors pared so-called carry trades, where they buy
higher-returning assets with money borrowed in countries with
lower interest rates. The local dollar has made the second-
biggest gain among major currencies in the past year because of
Australia's 6.25 percent benchmark rate, which compares with
Japan's 0.5 percent and 5.25 percent in the U.S.
Read more at Bloomberg Currencies News
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