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Dollar rises against yen amid carry-trades |
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08:22, May 15, 2008 |
The dollar rose against the yen and the Swiss franc on Wednesday as rising U.S. stocks boosted risky carry-trades.
The U.S. Labor Department reported Wednesday that consumer prices edged up 0.2 percent last month, slightly lower than expected and better than the 0.3 percent rise in March.
The data seemed to alleviate investors' worries that the recent surge in energy costs would force prices throughout the economy to spike higher, increasing appetite for carry-trades.
Carry trades are strategies in which investors borrow low-yielding currencies to buy assets offering higher returns.
Analysts said the better-than-expected CPI did not change market perceptions that the Federal Reserve's interest rate cutting campaign was almost over.
The euro bought 1.5461 dollars in late New York trading compared with 1.5480 dollars it bought late Tuesday. The British pound fell to 1.9441 dollars from 1.9459 dollars.
The dollar rose to 1.0567 Swiss francs from 1.0529 Swiss francs, and rose to 106.38 Japanese yen from 105.26 Japanese yen. It fell to 1.0031 Canadian dollars from 1.0033 Canadian dollars.
Source:Xinhua
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