Traders go 11,000 miles to exploit divergence in rates

Tokyo

CURRENCY traders are going to opposite ends of the earth to exploit the growing divergence in global interest rates.

With the turmoil in Greece deterring investors from betting on the euro versus the US dollar, more are selling New Zealand's currency to buy the UK pound in a trade that returned 17 per cent the past three months, the most among all the combinations of Group-of-10 currencies. Credit Suisse Group AG, Commonwealth Bank of Australia both recommend the strategy and Japan's Monex Inc says it's one of the most attractive.