Yen Falls Against Euro as Rally in U.S. Stocks Spurs Carry Trade Demand

(Bloomberg) -- The yen fell for a second day
against the euro as a rebound in U.S. stocks restored investors'
confidence to buy higher-yielding assets funded by loans in
Japan.

Japan's currency dropped the most against the New Zealand
and Australian dollars, favorites of the so-called carry trade,
as U.S. stocks recovered from the worst two-day slide since 2003.
The yen has gained against all 16 of the most-traded currencies
this month on concern over subprime losses and credit risks.


Read more at Bloomberg Currencies News