Tuesday, July 31, 2007

Yen Strengthens for a Second Day as Widening Debt Losses Curb Carry Trade

(Bloomberg) -- The yen gained for a second day versus
the euro on concern losses from U.S. mortgages will prompt
investors to pare riskier investments funded by loans in Japan.

Traders reduced so-called carry trades, pushing up the yen
versus 15 of the 16 most-active currencies. Macquarie Bank Ltd.,
Australia's largest securities firm, said investors in some of
its funds may lose as much as 25 percent of their money, a day
after investment banks cut off credit lines to American Home
Mortgage Investment Corp. Asian and U.S. stocks dropped.


Read more at Bloomberg Currencies News

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