The dollar traded near the strongest level in almost six years versus the yen on speculation U.S. employment data tomorrow will back the case for the Federal Reserve to raise interest rates next year.
A gauge of the greenback reached a 14-month high against major peers yesterday as 10-year Treasury yields rose above 2.5 percent for the first time in a month. The pound traded near the lowest level since November after a poll of voters in Scotland provided fresh evidence of a swing away from the U.K. in a referendum next week on independence. A measure of currency volatility climbed to a six-month high.
“The Fed is likely to raise rates by mid-2015, while other countries like Japan are forced to still ease,” said Kazuo Shirai, a trader at Union Bank NA in Los Angeles. “The dollar will be bought as the U.S. is likely to be the sole winner.”
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