The Australian Dollar has risen close to a 15 year high against the Japanese Yen after stronger U.S. stocks spurred a rise in carry trades. The Australian Dollar has gained the most against the Japanese Yen in the past three months, reaching a 5.8 percent increase.. The interest rate differential between the two countries is 5.75 percent, with Australian rates at 6.25 percent and Japanese rates at 0.5 percent. ''There was a big rise in U.S. equities which caused high- yield strength,'' said Greg Gibbs, a currency strategist at ABN Amro Holding NV in Sydney. ''The underlying demand for the Australian dollar-yen trade is likely to continue.''
In forex-trading against the Japanese Yen, the Australian Dollar traded at 100.11 Yen this morning in comparison to 99.94 in a May 11 trade in New York. Against the U.S. Dollar, the Aussie traded at 83.30 U.S. cents in comparison to last weeks trade of 83.13 U.S. cents. The Euro recently traded at an all time high against the Japanese Yen during April.
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