US dollar surges; gold hits 2-week low

By a staff reporter

The United States dollar continued its robust climb, rising to its highest level against the Japanese yen since October 2008, while also reaching an eight-month high against the Swiss franc and a one-month high against the euro.

The strength of the US dollar has rippled across global currency markets, as the Australian dollar dipped below parity against the US currency for the first time since June 2012 and the New Zealand dollar hit a seven-week low.

The US dollar rose above ¥100 recently for the first time since April 2009 and has managed to hold onto the gains, trading at ¥101.57 at 510 AEST Saturday morning.

Meanwhile, gold prices hit a two-week low, driven down by the US dollar's strength and demand concerns. Gold fell 1.97 per cent, or $US28.90, to $US1,439.70 by 540 AEST.

The yen has been weakening since the Bank of Japan announced aggressive stimulus measures April 4, sparking concerns of a global currency war as central banks seek to lower the value of their currencies to boost exports.

The US dollar was propelled by better-than-expected US jobless claim figures and comments from a US Federal Reserve official saying he would like to see the central bank slow down the pace of its bond buying.

Some analysts have predicted the US dollar will continue to gather strength, with Credit Suisse suggesting it could reach ¥120, which it has not been at since July 2007.