(Bloomberg) -- The Australian dollar dropped the
most in two weeks against the yen as a drop in U.S. stocks
prompted investors to pare investments funded by loans in the
Japanese currency.
The local dollar declined for a second day after the
Standard & Poor's 500 Index fell the most in a month on concern
mortgage defaults will worsen a U.S. housing slowdown. Japan's
0.5 percent overnight lending rate has prompted investors to
borrow yen to take advantage of Australia's 6.25 percent interest
rate. The so-called carry trade has helped the currency gain 11
percent versus the yen this year.
Read more at Bloomberg Currencies News
most in two weeks against the yen as a drop in U.S. stocks
prompted investors to pare investments funded by loans in the
Japanese currency.
The local dollar declined for a second day after the
Standard & Poor's 500 Index fell the most in a month on concern
mortgage defaults will worsen a U.S. housing slowdown. Japan's
0.5 percent overnight lending rate has prompted investors to
borrow yen to take advantage of Australia's 6.25 percent interest
rate. The so-called carry trade has helped the currency gain 11
percent versus the yen this year.
Read more at Bloomberg Currencies News
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