Wednesday, 27 February 2013 04:05
SYDNEY: The yen held near one-month highs on Wednesday, remaining susceptible to bursts of short-covering as political uncertainty in Italy kept the euro under the gun.
Comments from Federal Reserve Chairman Ben Bernanke that eased market concerns of an early end to the Fed's bond buying programme, also somewhat cooled demand for the greenback.
The dollar was at 91.99 yen, up from a one-month low of 90.85 touched on Monday. The euro stood at 120.18, having skidded to 118.74 early this week. Both currencies, however, were still not far from multi-year peaks of 94.57 and 127.71 respectively.
Traders said the Japanese currency was torn between investors wanting to book profits on very bearish positions and those looking to initiate new shorts at these levels.
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