NEW YORK: The US dollar hit a six-year high against the yen and a more than one-year high against the euro on Monday, posting broad gains on a day lacking any significant data or new central bank information.
Volatility began in the afternoon with the dollar accelerating gains against the Australian dollar and Brazilian real before the rally extended to knock the euro and the yen out of recent ranges.
The dollar index, which measures the greenback against six major currencies, rose 0.65 percent to 84.301, its highest level since July 2013.
"It's broad based, (higher Treasury) yields fit the picture of a higher dollar but there has been no Fed speak or data," said Richard Franulovich, senior currency strategist at Westpac Securities in New York.
The euro was last down 0.42 percent to US$1.2893, the weakest since July 2013. The dollar gained to 105.94 yen, the strongest level since 2008.
The greenback began the day strongest against sterling, which dived to its lowest in nearly 10 months after a poll for the first time showed Scotland was ready to vote to break up its three-century-old union with the rest of the United Kingdom.
With just 10 days until the referendum, a YouGov survey for the Sunday Times newspaper put approval of independence at 51 percent against the 'No' camp's 49 percent.
"The speed with which the polls have flipped has clearly been a shock to a lot of people," said Adam Myers, European head of FX strategy at Credit Agricole in London.
Sterling sank 1.36 percent, the most in 13 months, to trade at $1.6106 against the dollar. The Australian dollar fell 1.06 percent to US $0.9289, backing off from Friday's level of $0.9403, its highest since late July.
The Australian currency has shown surprising resilience despite US dollar strength and a sharp decline in prices of iron ore, Australia's top export earner, in large part due to renewed carry trade demand. Investors are borrowing at low rates in euros and yen to buy higher-yielding Aussie assets.
The Brazilian real fell 1.06 percent as the country's presidential race was shaken up by a corruption scandal that allegedly involves state-run oil firm Petrobras and dozens of lawmakers, with both leading candidates forced onto the defensive after colleagues were implicated.
The US dollar has gained despite disappointment over Friday's US employment report for August. "Although it disappointed expectations, and many details were not positive, the market tended to overlook the number a little bit," said Martin Schwerdtfeger, a foreign exchange strategist at TD Securities in Toronto.
"Other indicators are still showing that the US economy will strengthen in the second half of this year," he said. "The payroll number did not change that."
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