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Dollar broadly supported, hits fresh 6-year peak vs. yen

Published 09/19/2014, 05:40 AM
Updated 09/19/2014, 05:40 AM
Dollar remains broadly higher vs. rivals

Investing.com - The dollar remained rose to fresh six year highs against the yen and remained near a 14-month peak against a basket of major currencies on Friday, as the Federal Reserve's new guidance on rate hikes continued to support demand for the greenback.

USD/JPY climbed to highs of 109.46, the strongest level since August 2008 and was last up 0.23% to 108.93.

The dollar remained supported after the Fed on Wednesday cut its monthly bond-buying program by another $10 billion following its two-day policy meeting on Wednesday, keeping the program on track to finish next month.

Markets interpreted the Fed's statement as hawkish, despite policymakers maintaining language suggesting that rate hikes would not happen for a "considerable time."

Investors shrugged off data on Thursday showing that the Philadelphia Fed's manufacturing index deteriorated to a three-month low this month, as well as a report showing that U.S. building permits dropped by 5.6% last month and that housing starts tumbled by 14.4%.

EUR/USD slid 0.33% to 1.2880.

The pound was steady at 1.6393, pulling away from two-and-a-half week highs hit earlier, after Scotland voted to remain in the U.K.

In a referendum on Thursday, 55% of Scottish voters supported the "no" campaign compared with 45% who backed independence.

The decision prevented a rupture of a 307-year union with England.

The dollar was near one-year highs against the Swiss franc, with USD/CHF gaining 0.36% to 0.9371.

The franc remained supported however, after the Swiss National Bank refrained from taking steps to weaken the currency at its meeting on Thursday, despite concerns over what it called the "deteriorating" economic outlook.

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The New Zealand dollar was lower, with NZD/USD shedding 0.26% to 0.8130, while AUD/USD retreated 0.48% to 0.8130 and USD/CAD rose 0.25% to 1.0964.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, added 0.23% to 84.59, close to highs of 84.90, the strongest level since July 2010.

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