Thursday, July 26, 2007

Yen Strengthens as Equities Decline, Prompting Unwinding of Carry Trades

(Bloomberg) -- The yen rose to a 2 1/2-month high
against the dollar as global equities fell, prompting traders to
reduce investment in assets funded by borrowing in Japan.

The Japanese yen rose against all 16 most-actively traded
currencies as investors pared so-called carry trades, following a
declines in stock markets in Asia and Europe. U.S. stock-index
futures also dropped on concern losses related to subprime
mortgages will undermine economic growth.


Read more at Bloomberg Currencies News

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