Wednesday, June 13, 2007

Yen Trades at Lowest Since December 2002 Against Dollar on Yield Spread

(Bloomberg) -- The yen traded at the weakest against
the dollar since December 2002 as investors were enticed by the
yield advantage on U.S. Treasuries over Japanese debt.

The Bank of Japan will probably keep its overnight lending
rate at the lowest among major economies at a two-day meeting
beginning today, encouraging investors to send money overseas in
so-called carry trades. The yen has dropped 2.9 percent this year
as traders reduced bets on Federal Reserve rate cuts, causing the
U.S. 10-year yield spread with Japan to widen to a four-year high.


Read more at Bloomberg Currencies News

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