Monday, 20 August 2012

Euro Pares Losses As ECB Denies Discussions On Bond-Yield Limits

By John Detrixhe - Aug 20, 2012 6:47 PM GMT+0400

The euro pared a loss against the dollar as the European Central Bank said it hasn’t discussed any plan to target bond yields of euro-bloc members.
Europe’s shared currency slid earlier after Germany’s Bundesbank stepped up criticism of proposals that the European Central Bank buy government bonds to quell the region’s debt crisis. Spiegel magazine reported the ECB’s governing council is considering setting yield limits on euro-region bonds, without saying where it got the information.
“You have a mix of positive and negative news, and the market is reacting somewhat more towards the negative news, but the trend remains positive,” Sebastien Galy, a senior foreign- exchange strategist at Societe Generale SA in New York, said in a telephone interview.
The euro was little changed at $1.2329 at 10:47 a.m. New York time, after falling as much as 0.3 percent. It depreciated 0.3 percent to 97.81 yen, after advancing 0.2 percent. It reached 98.41 yen on Aug. 17, the most since July 6. The dollar dropped 0.3 percent to 79.36 yen.
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