Early trade in New York: dollar hits six-year peak against yen

The dollar rose to a more than six-year peak against the yen on Thursday, after data showed US jobless claims fell more than expected last week, reinforcing the market's view that US interest rates will rise sooner rather than later. The dollar index, a measure of the greenback's value against six currencies, climbed to its strongest level in more than four years, supported by the Federal Reserve's interest rate forecasts that were higher than those projected in June. The outlooks were provided after the Fed's monetary policy meeting on Wednesday.
The dollar rose as high as 108.96, the strongest since late August 2008. It last traded at 108.74, up 0.4 percent. The dollar index hit a more than four-year peak of 84.782 and was last at 84.462, up 0.2 percent. The greenback retraced gains versus the Swiss franc, trading down 0.4 percent at 0.9369 franc. On Wednesday following the Fed meeting, the dollar hit a one-year high against the Swiss currency. The euro recovered after falling to a 14-month low on Wednesday versus the dollar to trade 0.2 percent higher at $1.2893. The pound was last up 0.6 percent at $1.6376.