Australian and New Zealand dollars surge versus yen

The Australian and New Zealand dollars soared to multi-month highs against a broadly weaker yen on Wednesday, buoyed by a revival in carry trades and risk appetite. The Aussie tore to a 2.5-year high of 88.68 yen as investors sought higher-yielding assets using the Japanese unit as a funding currency.
The Australian dollar, at 88.33 yen in late local trading and up 0.7 percent on the day, has seen a huge turnaround from a trough near 75 yen plumbed on March 17, before the G7 intervened to curb yen strength. The New Zealand dollar climbed to a session high of 65.88 yen, up nearly one percent on the day, a long way from a trough of 55 just three weeks ago. The rush into Aussie/yen in turn dragged the local dollar up on its US counterpart to around $1.0370, from $1.0327 in New York. The NZ dollar also inched up to $0.7718, a whisker away from a two-month high of $0.7727 struck earlier.