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Euro gains as Ukraine, Iraq crises fester

The euro rebounded slightly against the dollar and yen on Friday (Aug 8) amid continuing fears of a Russian invasion of Ukraine and after the US launched bomb strikes on Islamic State insurgents in Iraq.

NEW YORK: The euro rebounded slightly against the dollar and yen on Friday (Aug 8) amid continuing fears of a Russian invasion of Ukraine and after the US launched bomb strikes on Islamic State insurgents in Iraq.

The changes were small; the strikes ordered by Obama helped push risk-averse investors back into US treasuries, where 10-year yields fell to a 14-month low before partially recovering, according to Kathy Lien of BK Asset Management.

"Geopolitical uncertainty is clearly driving risk appetite, and the conflicts abroad have made US assets very attractive," she said.

In addition, she said, economic data is mostly glum in Europe, Australia and Canada.

"There's a subtle 'buy America' mentality out there, not because the outlook for the US economy is strong, but because there are no better alternatives."

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