Monday, May 21, 2007

Yen Trades Near Record Low Against Euro Before Bank of Japan's Minutes

(Bloomberg) -- The yen traded near a record low
against the euro as minutes from a Bank of Japan meeting last
month may show the central bank will keep interest rates
unchanged for some time.

Japan's currency yesterday also reached the lowest in three
months versus the dollar as investors used the country's 0.5
percent borrowing costs for yen loans to buy assets at Europe's
3.75 percent or the 5.25 percent U.S. rate. Yield spreads are
unlikely to narrow after policy makers cut Japan's inflation
forecast to near zero percent on April 26-27.


Read more at Bloomberg Currencies News

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