By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) -- The U.S. dollar pushed higher across the
board, hitting a fresh six-year high against the yen, while the
British pound found trading choppy as polling opened in Scotland
for the closely watched referendum on independence.
The dollar (USDJPY) rose to Yen108.70, versus Yen108.37 in late
North American trading, but tapped Yen108.87, a fresh six-year high
against the Japanese currency.
The dollar soared on Wednesday against both the euro and the
yen, after policy statements by the U.S. Federal Reserve and
comments by Chairwoman Janet Yellen did nothing to shift the
picture of a central bank moving quickly to hike interest rates
after its bond-buying program ends.
In its statement, the Federal Open Market Committee kept its
pledge intact to keep rates low for a "considerable time" after it
halts its bond-buying program in October, but the statement was
viewed as more hawkish -- hence dollar supportive -- than had been
expected. (Also see Yellen highlights
http://www.marketwatch.com/story/yellen-on-considerable-time-and-other-press-conference-highlights-2014-09-17.)
More easing from China gave stock futures and European stocks a
lift. China's central bank made its second surprise move this week
to ease monetary policy with a cut in short-term borrowing costs
for banks Thursday, amid concerns the country's economy is
slowing.
The euro (EURUSD) was up slightly at $1.2876, from $1.2867 seen
in late North American trading. The European Central Bank said
eurozone banks borrowed EUR82.6 billion ($106.9 billion) in
four-year loans from its new facility aimed at spurring lending to
businesses and boosting inflation from its current ultra-low
levels.
That was below what analysts expected and could foster some
doubts about whether the lending program will be enough to
jump-start borrowing and spending in the eurozone. Kit Juckes,
global macro strategist at Société Générale, said ahead of the
announcement that "a number below EUR100 billion would challenge
the ECB package."
Eyes on Scotland: The pound pushed up against the dollar
(GBPUSD), getting a lift after data showed U.K. store prices fell
1.2% in August, the biggest drop since July 2009. The pair traded
at $1.6311, up from $1.6280 seen in late North American trade.
The Scottish vote remained a key focus for the pound. As polling
stations opened early Thursday, the final YouGov survey echoed
others showing a close race. The research showed the "No" vote
leading 52% to 48%, but YouGov's analysts said it was still too
tight to call.
The pound has been battered by what was once an unthinkable
possibility: that Scots would vote to separate from the U.K. Should
the referendum be defeated, the pound is expected to see an
immediate relief rally, said Marshall Glitter, head of global FX
strategy at IronFX.
"The response is not likely to be euphoric, however, as much of
the rally has already occurred since the stunning rise in the 'Yes'
vote stalled a week or so ago," he said.
In what's still viewed as an unlikely event of a "Yes" vote,
Glitter and other analysts said investors can expect a sharp
selloff in the pound.
In other currency trading, the euro (EURJPY) rose to Yen139.98
from Yen139.33, driven by yen weakness.
The WSJ Dollar Index , a measure of the dollar against a basket
of major currencies, was slightly off at 76.71.
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