Monday, June 18, 2007

Yen Drops to Record Low Versus Euro as European Yields Attract Investors

(Bloomberg) -- The yen weakened to a record low
against the euro as the extra yield investors earn on European
bonds over Japanese notes widened to the most in five years.

Japan's currency also reached a 15-year low against the
Australian dollar and a 19-year low against the New Zealand
dollar, paring gains made after traders said the Reserve Bank of
New Zealand intervened. The yield difference, or spread, between
two-year German and Japanese debt expanded to the most since
August 2002, boosting the appeal of euro-denominated assets.
Japan has the lowest interest rates of any major economy.


Read more at Bloomberg Currencies News

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