U.S. Dollar Boosted by Fed’s Forecast

The dollar was set for the highest closing level in four years versus major peers after Federal Reserve officials raised their target-rate forecast. The yen slid to a six-year low before the Bank of Japan governor speaks.

The greenback returned to levels unseen since the collapse of Lehman Brothers Holdings Inc. after Fed policy makers increased their median estimate for the key rate to 1.375 percent at the end of 2015 versus June’s forecast for 1.125 percent. The pound remained higher as Scotland votes today on independence. The euro touched its weakest since July 2013 with the European Central Bank preparing to allot the first funds under its so-called targeted longer-term refinancing operations.

The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major currencies, rose 0.2 percent to 1,055.71 as of 1:33 p.m. in Tokyo, poised for the highest closing level since June 2010.  The U.S. currency climbed to 108.75 yen, the strongest since Sept. 8, 2008, before trading 0.3 percent higher at 108.67. It was little changed at $1.2864 per euro and touched $1.2835, the most since July 2013.

Bloomberg

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