Thursday, July 5, 2007

Australian Dollar Rises to Highest in 18-Years on Attraction of Yields

(Bloomberg) -- The Australian dollar rose to an 18-
year high against the U.S. currency and the strongest in 16
years versus the yen as investors were attracted to the nation's
high-yielding assets.

The Australian currency has advanced 12 percent against the
yen this year as traders borrow in Japan, where the benchmark
interest rate is 0.5 percent, to fund investments elsewhere.
Australia's key borrowing cost is 6.25 percent. Stocks rose in
Asia and Europe, prompting investors to buy riskier assets.


Read more at Bloomberg Currencies News

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