10:49 GMT +316 January 2018
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    Euro Uncertainty Amid Brexit Can ‘Push Up’ US Dollar

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    Britain's exit from the European Union, also known as Brexit, could force financial markets to switch to safety flows in the US dollar or other alternative currencies, US Federal Reserve Chair Janet Yellen said in a testimony to Congress on Tuesday.

    WASHINGTON (Sputnik) — UK nationals are set to vote on June 23 in a referendum on the country's membership in the European Union, after Prime Minister David Cameron and the leaders of the 27 EU member states agreed in February to grant the United Kingdom a special status within the bloc.

    "I think the financial market reaction to the uncertainties that would be unleashed by that decision [Brexit] could result in a kind of risk-off sentiment, that we would see impacts on financial markets, that we might see flight to safety flows that could push up the dollar or other so-called safe-haven currencies," Yellen stated.

    The Federal Reserve chair added that the authorities will consider the possible impacts on future decisions on US monetary policy.

    Yellen noted that a US recession caused by a potential Brexit is unlikely.

    "We just don't really know what will happen and we will have to watch very carefully," she added.

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