Dollar Extends 6-Year Highs Versus Yen; Sterling Rallies

September 18, 2014

Washington (Sept 18)   The dollar remained mixed Thursday, surging to a fresh 6-year peak versus the yen but coming under heavy pressure against the sterling.

The sterling was the day's strongest currency amid indications that Scottish voters will vote to stay with the  UK  . The latest  Ipsos MORI  survey reveals the public split 53% to 47% against independence as Scots arrive at polling places.

Traders continued to assess yesterday's pronouncements by the Federal Reserve, with the central bank vowing once again to keep interest rates at zero for a "considerable time."

Still, there were some hints that once the Fed finally tightens, rates will rise at a faster pace than markets have come to expect.

The dollar rose to near  Y109  versus the yen, its highest level since  August 2008  .

Choppy dealing left the dollar at  USD1.2915  against the euro, about a penny from a recent 14-month high near  USD1.28  .

On the other hand, the buck slipped  USD1.6364  versus the sterling, moving well away from last week's 10-month peak near  USD1.61  .

In economic news from the US, data from the  Labor Department  showed initial jobless claims to have tumbled more than expected to 280,000 in the week ended  September 13th  , falling 36,000 from the previous week's revised level of 316,000. Economists expected jobless claims to edge down to 305,000 from the 315,000 originally reported for the previous week.

A report from the  Commerce Department  said that US housing starts declined by a much more than expected 14.4% to a seasonally adjusted rate of 956,000 in August, from the revised July estimate of 1.1117 million.

Meanwhile, a report released by the Federal Reserve Bank of  Philadelphia  indicated continued growth in regional manufacturing activity in September, although the bank said the index of activity in the sector declined to 22.5, from a three-year high of 28.0 in August.

Source: AllianceNews

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