TOKYO: The dollar rose against most currencies in Asia Thursday after the US Federal Reserve hinted interest rates could rise more than initially thought next year, while the pound dipped as Scotland goes to the polls in its independence referendum.
In Tokyo afternoon trade, the dollar hit a fresh six-year high of 108.72 yen, compared with 108.29 yen in New York Wednesday.
The euro slipped to $1.2860 from $1.2865, while it climbed to 139.85 yen from 139.32 yen.
Investors also shifted into the greenback from a basket of Asia-Pacific currencies including the South Korean won, Singapore dollar and Indonesian rupiah on hopes for higher returns in the United States.
After a closely watched meeting, the US central bank said Wednesday it would stick to its policy on interest rates, keeping them at a record low of 0-0.25 percent despite growing calls for a rise as the world's number one economy strengthens.
Markets had been on the watch for a change in the central bank's language, which could have signalled a rate hike before the mid-2015 timeline currently in place.
Bank chief Janet Yellen continued with her line that there remains too much slack in the jobs market even as the US unemployment rate has fallen to 6.1 percent.
However, the Fed did suggest that when rates eventually increase, they could end next year higher than initially estimated.
More Fed policymakers than ever agree that a rate increase will happen next year. Their median forecast for the fed funds at the end of the year was 1.375 percent, 0.25 percentage point more than the June median.
Markets are also keeping a close eye on the pound, which slipped to $1.6263 from $1.6280, ahead of Thursday's Scottish independence referendum, with the "No" vote appearing to have the edge in polls.
Economists worry a vote to break away from the United Kingdom could cause turbulence for both the English and Scottish economies, while some have warned the pound could fall about 10 percent against the dollar.
The greenback rose to 1,041.28 South Korean won from 1,034.45 won on Wednesday, to Sg$1.2688 from Sg$1.2622, and to 32.30 Thai baht from 32.23 baht.
It also strengthened to Tw$30.23 from Tw$30.13, to 44.54 Philippine pesos from 44.17 pesos, and to 12,025.00 Indonesian rupiah from 11,943.80 rupiah. The Australian dollar dropped to 89.80 US cents from 90.74 cents
However, it dollar weakened to 60.91 Indian rupees from 60.99 rupees, while the Chinese yuan fetched 17.64 yen against 17.42 yen.
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