The euro climbed against the dollar to its highest in more than a year ahead of an expected ECB rate hike, while the yen slid on Wednesday to an 11-month low against the euro and a six-month low against the dollar. More losses were expected for the yen as investors such as macro hedge funds add to bearish bets, with the Bank of Japan looking set to lag other central banks in tightening policy.
The euro rose as high as $1.4350, according to Reuters data, its highest since late January 2010, with traders reporting steady buying by Asian central banks. Large option barriers cited at $1.4350 and $1.4400 could cap gains in the near term, however. It last traded up 0.9 percent at $1.4342. The euro was up 1.3 percent at 122.35 yen, having earlier touched an 11-month peak, with stop-loss buying earlier in the session adding to its rise. The dollar was up 0.5 percent at 85.30 yen. The dollar fell 0.9 percent against the Swiss franc to 0.9166 francs.
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