Wednesday, July 11, 2007

Czech Koruna Rises Versus Euro as Risk-Averse Investors Unwind Carry Trade

(Bloomberg) -- The Czech koruna advanced to the
highest in a month against the euro as risk-averse investors
unwound so-called carry trades funded in the currency.

The koruna also rose to a two-month high versus the dollar
as investors bought back currencies that they'd previously
borrowed at low interest rates and used to fund higher-yielding
purchases. At 2.75 percent, Czech borrowing costs are the lowest
in the European Union, making the koruna ideal for these trades.


Read more at Bloomberg Currencies News

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