Yen Trades Near Lowest Since 2002 Versus Dollar on Widening Yield Spread

(Bloomberg) -- The yen traded near the weakest
against the dollar since December 2002 as investors are attracted
to U.S. Treasuries and their yield advantage over Japanese debt.

Economists expect the Bank of Japan to keep rates at the
lowest among major economies at a two-day meeting beginning today,
encouraging investors to send money overseas in so-called carry
trades. The yen has dropped 2.9 percent this year as traders
reduced bets the Federal Reserve will cut rates, causing U.S.
yields to rise and the 10-year spread with Japan to widen to the
most in almost four years.


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