GBP/USD Rallies to 1.62 on Fading Scotland Support

The pound jumped from the lowest level against the dollar in 10 months after an opinion poll showed fading support for Scotland’s bid for independence from the U.K.

The dollar reached the strongest against the yen since 2008 and rose versus the euro as traders raised bets the Federal Reserve will increase interest rates in mid-2015. Switzerland’s franc slumped to a one-year low against the dollar and dropped versus the euro after the Wall Street Journal reported negative interest rates remain an option for the Swiss National Bank. The ruble dropped as European officials considered sanctions against Russia.

“We’ll continue to see this back-and-forth in the pound based on whatever poll that’s coming out,” Ken Wills, currency strategist at CanadianForex Ltd. in Toronto, said in a phone interview. “An awful lot of events are also going on at the same time. We’re seeing a normalization in volatility.”

Bloomberg

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