Tuesday, July 10, 2007

Yen Falls from Month High as Funds May Stay Abroad With BOJ Likely on Hold

(Bloomberg) -- The yen fell from a one-month high
against the dollar on speculation Japanese investors took
advantage of a 1.4 percent rally yesterday to sell the currency
to invest in higher-yielding securities.

Japan's yen declined over the past month versus 15 of the 16
most-active currencies as the lowest interest rate among major
economies encouraged so-called carry trades. Forecasts the Bank
of Japan will keep borrowing costs unchanged tomorrow may put
further pressure on the yen to weaken as the rate differential
discourages investors from putting money into domestic assets.


Read more at Bloomberg Currencies News

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