TOKYO: Sterling rose to a two-week high against the US dollar and two-year peak against the euro on Friday, taking comfort from early results of a Scottish referendum that indicated a break-up of the United Kingdom will be averted.
The results from several small boroughs showed a solid lead for the "No" camp to independence. Earlier, a YouGov survey showed support for Scottish independence amounted to 46 percent of the electorate with 54 percent wanting to stay in the United Kingdom.
"The YouGov survey seems to have a fairly big sample size so I suspect it will be not that off the official result," said a trader at a Japanese bank.
The pound jumped almost 0.8 percent to $1.6525, its highest since Sept. 2, and last stood at $1.6508, extending its bounce from a 10-month low of $1.6052 hit on Sept. 10.
Against the euro, it hit a two-year high of 78.12 pence per euro and climbed to a six-year high of 180.66 yen.
The US dollar stood tall against the yen, after scaling a six-year high on Thursday as a drop in US jobless claims reinforced the market's view of the diverging trajectory of interest rates between the United States and Japan.
The dollar jumped to as high as 109.46 yen before stepping back a tad to 109.18 yen, still up 0.5 percent on the day.
The yen also faltered as more weak economic data reinforced expectations the Bank of Japan will have to offer more sitmulus.
While other US data on Thursday showed some weakness in home building and factory activity, they hardly dented the perception that the US central bank will be well ahead of the likes of the Bank of Japan in tightening rates.
The Federal Reserve reiterated this week that near zero rates will be maintained for a considerable time, but policymakers also indicated they expect faster rate hikes next year and the year after.
That boosted yields on US notes, and hence the yield appeal of the dollar.
The dollar index, a measure of the greenback's value against six currencies, climbed to 84.743, its strongest level in more than four years and last stood at 84.268. The euro also hit a 14-month low of $1.2834 on Thursday before bouncing back higher and it last traded at $1.2917.
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