(Bloomberg) -- Bank of America Corp. advised clients
to buy the Australian dollar, predicting it will rise to an
almost 16-year high versus the yen in coming months. Westpac
Banking Corp. will happily sell it to them.
The second-biggest U.S. bank is betting investors will
continue to put on so-called carry trades, borrowing at Japan's
0.5 percent interest rate to buy higher-yielding assets in
Australia, where rates are at a six-year high of 6.25 percent.
The strategy has pushed up the Australian dollar 18 percent
against the yen in the past 12 months to a 15-year high last week.
Read more at Bloomberg Currencies News
to buy the Australian dollar, predicting it will rise to an
almost 16-year high versus the yen in coming months. Westpac
Banking Corp. will happily sell it to them.
The second-biggest U.S. bank is betting investors will
continue to put on so-called carry trades, borrowing at Japan's
0.5 percent interest rate to buy higher-yielding assets in
Australia, where rates are at a six-year high of 6.25 percent.
The strategy has pushed up the Australian dollar 18 percent
against the yen in the past 12 months to a 15-year high last week.
Read more at Bloomberg Currencies News
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