(Bloomberg) -- The Canadian dollar fell the most in
13 months as declining global stocks led investors to unwind
risky bets on currencies where interest rates may be headed
higher.
Canada's dollar was one of 16 major currencies to drop
versus the yen today. Investors have borrowed in Japan, where
the benchmark rate is 0.5 percent, to buy assets in economies
such as Canada where rates are higher, in a bet known as the
carry trade. As stocks fall and speculation mounts that losses
will climb from subprime mortgages, investors become risk averse
and exit those carry-trade bets, buying back yen.
Read more at Bloomberg Currencies News
13 months as declining global stocks led investors to unwind
risky bets on currencies where interest rates may be headed
higher.
Canada's dollar was one of 16 major currencies to drop
versus the yen today. Investors have borrowed in Japan, where
the benchmark rate is 0.5 percent, to buy assets in economies
such as Canada where rates are higher, in a bet known as the
carry trade. As stocks fall and speculation mounts that losses
will climb from subprime mortgages, investors become risk averse
and exit those carry-trade bets, buying back yen.
Read more at Bloomberg Currencies News
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