Monday, July 9, 2007

Yen Gains Against Higher-Yielding Currencies Before BOJ's Policy Meeting

(Bloomberg) -- The yen rebounded from a record low
against the euro on speculation the Bank of Japan will signal at
a meeting this week it will raise interest rates in August.

The currency also rose against the New Zealand dollar, the
Australian dollar and the British pound, which are favored for
their higher yields. An increase in Japan's 0.5 percent overnight
lending rate may discourage investors from borrowing yen to
purchase overseas assets, known as carry trades.


Read more at Bloomberg Currencies News

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