LONDON (Oct 5): The euro soared to a five-year peak against the struggling pound on Wednesday and scaled a three-week high against the yen, bolstered by rising euro zone government bond yields. Euro zone bond yields rose to two-week highs in early trade, with investors on edge a day after a Bloomberg article cited sources as saying the central bank would probably wind down its bond buying gradually before ending quantitative easing. "We do not think the ECB is anywhere close to tapering its asset purchase programme, but in the near term momentum is towards euro upside." DOLLAR SLIPSThe euro's rise saw the dollar retreat from near a two-month high against a basket of currencies. It was slightly lower at 102.77 yen after rising to a three-week high of 102.965 on Tuesday, when it posted its sixth straight day of gains versus its Japanese peer.

Source: The Edge Markets October 05, 2016 08:15 UTC