Wednesday, July 11, 2007

Yen Declines Against Euro as Advance in U.S. Stocks Prompts Carry Trades

(Bloomberg) -- The yen fell versus the euro, dollar
and a dozen other major currencies as strength in U.S. stocks
signaled investors are halting a flight from risky assets.

The yen gave up gains posted earlier today and yesterday
when investors fled risky trades following Moody's Investors
Service's move to cut ratings on $5.2 billion of bonds backed by
U.S. subprime mortgages. The rating reduction led some traders
to exit so-called carry-trade bets financed by borrowing yen.


Read more at Bloomberg Currencies News

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