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Japanese Yen declines against the AUD, British Pound and Euro on Carry Trade

The Japanese continued to decline as currency carry trades continue to increase

Submitted by Peter Fleming on Mon, 18/06/2007 - 10:04pm.
In Major Currencies | Economic Indicators | Japanese Yen | Market Reactions

The Japanese Yen has declined to a record low against the Euro and a 15-year low against the Australian Dollar as speculation increases that investors are continuing to borrow the yen in order to carry trade. ''I expect the yen to depreciate gradually in the coming weeks,'' said Toru Umemoto, chief currency analyst at Barclays Capital in Tokyo. ''Japanese investors are shifting funds from yen deposits to overseas assets to seek better returns.''

In the foreign-exchange, the Yen declined to 165.55 against the Euro, an all time low, before resuming trade at 165.47 Yen. It reached a 15 year low against the Australian Dollar, trading at 104.27 after declining to 104.29 Yen. Against the British pound, it dropped to 244.66 Yen which is its lowest level since September 1992, before resuming trade at 244.53 from 243.95 Yen.

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