The yen held onto its edge against its major counterparts in Asian trading on Wednesday as investors awaited an Italian bond auction later in the session which could give clues on the direction of the euro.
Italy’s borrowing costs have soared on the back of a political stalemate following its recent election, creating a challenging environment for the country’s sale of new 10-year bonds and five-year paper.
Markets are already uneasy after the election produced no clear winner and the single currency could lose ground again if Italy is forced to pay far higher borrowing costs than before the polls.
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