By Hideyuki Sano
TOKYO, June 29 (Reuters) - The pound and the euro hovered above their post-Brexit lows on Wednesday as a brief short-covering spell lent a semblance of stability to the battered European currencies, though they remained hampered by longer term uncertainty.
The British pound fetched $1.3326 GBP=D4 , little changed in early trade and above Monday's 31-year low of $1.3122.
The euro also stabilised at $1.10735, off its 3 1/2-month low of $1.0912 hit on Friday.
Against sterling, the common currency traded at 82.90 pence EURGBP=D4 , not far from its Monday's high of 83.80, its highest level in more than two years.
"This has been driven by nothing more than short-covering. The pound may not visit the lows touched earlier, in next couple of days but it will likely do so if we look at a longer time frame, say to September or December," said Masafumi Yamamoto, chief FX strategist at Mizuho Securities.
As European currencies recovered some of their poise, the dollar's index against a basket of six major currencies .DXY =USD ticked down to 96.04 from Monday's high of 96.705.
As the markets' risk averse mood eased slightly, the dollar also firmed to 102.63 yen JPY= , moving further away from its 2-1/2-year low of 99.00 touched in highly volatile trade on Friday after the outcome of the UK referendum.
Japanese Prime Minister Shinzo Abe on Wednesday urged the central bank to provide ample funds to the market to ensure liquidity, at the start of a meeting between the government and the BOJ to discuss market developments after the Brexit vote. authorities have warned in the past that they could intervene in the currency market to stem the yen's rise, but traders suspect the hurdle for yen-selling intervention is high.
The dollar extended gains after U.S. first-quarter economic growth was revised up to 1.1 percent from the previous reading of 0.8 percent. overriding worries over how Brexit could disrupt the global economies are likely to keep many investors cautious.
U.S. money markets are also pricing out any chance of the Federal Reserve raising interest rates in the coming 12 months, suggesting a tempering of the dollar's yield allure.
Elsewhere, the Turkish lira was stable so far after attacks by suicide bombers killed 28 people in Istanbul's main international airport, Europe's third busiest. lira traded little changed at 2.9030 to the dollar TRYTOM=D3 . (Editing by Shri Navaratnam)