Dollar Falls to Six-Year High on Interest Rate Speculation


Dollar Falls to Six-Year High on Interest Rate Speculation The dollar touched its highest level in six years against the yen on bets the Federal Reserve will deviate from its usual policy talk of keeping borrowing costs low for “a considerable time”.

The U.S. currency rose 0.5 percent to trade at 107.63 yen as of 1:16 p.m. in New York and touched 107.65 yen, its highest level since September 2008. The dollar was slightly unchanged at $1.2958 per euro. The euro jumped 0.4 percent to 139.45 yen and hit 139.49, its strongest level since June 9.

The greenback had earlier plunged briefly after data indicated U.S. consumer prices surprisingly declined in August. The Federal Open Market Committee is set to conclude its two-day policy gathering today.

“The market is evenly divided on what the Fed’s going to do, whether they’re going to adjust their language,” Omer Esiner, a Washington-based chief market analyst at currency brokerage Commonwealth Foreign Exchange Inc., told Bloomberg News. “Assuming the Fed does modify subtly the language, it’ll probably help the dollar move higher.”

The pound rose against most of its counterparts ahead of tomorrow’s vote on Scotland’s breakaway from its 307-year union with the U.K. The U.K. currency also gained after minutes of the Bank of England’s latest policy meeting revealed that two officials voted in favor of raising interest rates for the second month. The U.K. unemployment rate also touched a six-year low of 6.2 percent.

The pound edged up 0.2 percent to $1.6311 and touched $1.6358, its strongest level since Sept. 4. It advanced 0.3 percent to 79.42 pence per euro. To register for a free 2-week subscription to ForexMinute Premium Plan, visit

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