BLBG:Euro Erases Gain After Bundesbank Sees Risks In Bond-Buying Plan
The euro erased its advance against the dollar and declined versus the yen after Germany’s Bundesbank said government bond purchases “entail significant stability risks.”
Europe’s shared currency weakened 0.1 percent to $1.2318 at 11:08 a.m. London time, after rising as much as 0.3 percent earlier. It depreciated 0.2 percent to 97.92 yen, after advancing as much as 0.2 percent.
“Government bond purchases by the Eurosystem are to be seen critically and entail significant stability risks,” the Frankfurt-based central bank said in its monthly report today. The new program “could be unlimited” and decisions about potentially far greater sharing of solvency risks should be taken by governments, not by central banks, it said.
To contact the reporter on this story: Emma Charlton in London at echarlton1@bloomberg.net
To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net
