(Bloomberg) -- The New Zealand dollar dropped from
near a 22-year high as declining U.S. stocks and concern about
losses tied to that nation's housing and mortgage market
prompted some investors to unwind riskier bets.
The currency, known as the kiwi, is a favorite for the
carry trade, where investors borrow cheaply in yen to put their
funds in countries that offer higher yields. New Zealand's
record 8 percent benchmark interest rate is 7.5 percentage
points higher than Japan's, luring traders to the higher returns
offered by the nation's fixed income assets.
Read more at Bloomberg Currencies News
near a 22-year high as declining U.S. stocks and concern about
losses tied to that nation's housing and mortgage market
prompted some investors to unwind riskier bets.
The currency, known as the kiwi, is a favorite for the
carry trade, where investors borrow cheaply in yen to put their
funds in countries that offer higher yields. New Zealand's
record 8 percent benchmark interest rate is 7.5 percentage
points higher than Japan's, luring traders to the higher returns
offered by the nation's fixed income assets.
Read more at Bloomberg Currencies News
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