(Bloomberg) -- The Australian dollar rose to an 18-
year high against the U.S. currency and rebounded from two days
of losses versus the yen after a recovery in U.S. stocks
prompted investors to return to higher-yielding assets.
The currency has gained 12 percent this year as traders
have been lured by Australia's overnight cash rate target at a
six-year high of 6.25 percent. That compares with 5.25 percent
in the U.S. and 0.5 percent in Japan. Australia's dollar fell
the most in two weeks against the yen yesterday as a drop in U.S.
stocks prompted investors to exit so-called carry trades, in
which they had bought riskier assets with loans from Japan.
Read more at Bloomberg Currencies News
year high against the U.S. currency and rebounded from two days
of losses versus the yen after a recovery in U.S. stocks
prompted investors to return to higher-yielding assets.
The currency has gained 12 percent this year as traders
have been lured by Australia's overnight cash rate target at a
six-year high of 6.25 percent. That compares with 5.25 percent
in the U.S. and 0.5 percent in Japan. Australia's dollar fell
the most in two weeks against the yen yesterday as a drop in U.S.
stocks prompted investors to exit so-called carry trades, in
which they had bought riskier assets with loans from Japan.
Read more at Bloomberg Currencies News
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