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Yen Gains on Safe-Haven Demand

(July 1 Reuters) The yen climbed sharply against the dollar, euro and sterling on Friday, as political uncertainty and a Reuters report that the European Central Bank was not considering loosening its rules on monetary easing boosted demand for safe havens.

The euro recovered against the dollar EUR= after sources told Reuters that the ECB is not currently discussing buying government debt out of proportion to euro zone countries' shareholding in the bank, and the hurdle for abandoning this capital key is high.

The euor had fallen sharply on Thursday, along with European bond yields, and had continued its fall on Friday, on a Bloomberg report that the ECB had been considering giving up the capital key due to a shortage of German paper, which investors see as safe and have piled into the aftermath of Britain's vote to leave the European Union last week.

Click on the link below to see the full story from Reuters: (by Jemima Kelly)

Yen gains on safe-haven demand

 



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