Sunday, July 29, 2007

Australian and New Zealands Dollars Slump as Investors Reduce Carry Trades

(Bloomberg) -- The Australian and New Zealand
dollars slumped to a one-month low as declines in stocks
prompted investors to cut holdings in higher-yielding currencies.

The Australian dollar has fallen 4.1 percent against the
U.S. currency since reaching an 18-year high on July 25. New
Zealand's dollar plunged 6.1 percent since reaching the highest
since 1985 on July 24. They have been favorites for carry trades,
in which traders borrow cheaply in yen and seek higher returns
globally.


Read more at Bloomberg Currencies News

No comments: