Pound Rebounds after Scotland’s Independence Bid Loses Support

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Pound Rebounds after Scotland’s Independence Bid Loses SupportThe pound rebounded from a 10-month low after an opinion poll indicated Scotland’s push for separation from the U.K. is losing momentum.

The currency rose 0.6 percent to trade at $1.6204 as of 3:52 p.m., New York time. It had earlier declined to $1.6052, its lowest level since Nov. 15. The pound has dropped 3 percent in September alone as of Tuesday, exceeding its 16 major counterparts.

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

The dollar advanced to its highest level versus the yen since 2008 and gained against the euro after traders speculated the Federal Reserve will raise borrowing costs in mid-2015. The U.S. currency advanced 0.6 percent to 106.80 yen and touched 106.89, its highest level since September 2008. It rose 0.2 percent to $1.2912 per euro after earlier advancing to $1.2680 on Thursday, its strongest level since July 2013. The euro rose 0.4 percent to 137.90 yen.

The Swiss franc touched its lowest level in one year versus the dollar and the euro after the Wall Street Journal stated that the Swiss National Bank can opt for negative interest rates if necessary. The franc fell 0.4 percent to trade at 93.70 centimes per dollar and reached a low of 93.96 centimes, the weakest level since September 2013. The Swiss currency dropped 0.2 percent to 1.2099 per euro and touched 1.2119, its lowest level since Aug. 15.To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

To contact the reporter of this story; Jonathan Millet at john@forexminute.com