(Bloomberg) -- New Zealand's dollar fell as
declining stocks and concern about losses tied to subprime
mortgages in the U.S. prompted some investors to unwind riskier
bets.
The currency is a favorite for the carry trade, where
investors borrow cheaply in yen to put their funds in nations
offering higher yields. New Zealand's 8 percent official cash
rate is 7.5 percentage points higher than Japan's overnight rate.
Read more at Bloomberg Currencies News
declining stocks and concern about losses tied to subprime
mortgages in the U.S. prompted some investors to unwind riskier
bets.
The currency is a favorite for the carry trade, where
investors borrow cheaply in yen to put their funds in nations
offering higher yields. New Zealand's 8 percent official cash
rate is 7.5 percentage points higher than Japan's overnight rate.
Read more at Bloomberg Currencies News
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