The US Dollar peaked versus the Yen in nearly six years after the Treasury yields rose on the speculation that the economic reports out this week will bolster the case for Federal Reserve to up the interest rates in 2015.

Economy improves

The dollar tasted a high in the 14 month period prior to US data forecast which revealed the improvement of retail sales and decrease in jobless claims. The policy makers of the Federal Reserve have their next meeting on September 16 and September 17. According to researchers working at the San Francisco Fed, the presence of low volatility encompassing the financial markets could mean that the rate increases are underestimated by traders. The pound dropped to its lowest from November, thus extending September 8 decline in about 14 months, prior to the Scottish independence vote due to happen next week.

According to Kengo Suzuki of Mizuho Securities, there is a fair chance that the dollar may reach newer highs compared to the Yen before next week’s Fed meeting. The new found confidence in the American economy helped the dollar to break out off its range. The Feed stirs the policy debate after the tapering reaches its ends. Suzuki expressed the opinion that the Yen may test 110 for every dollar in 2014.

Dollar and other currencies

The dollar added 0.2 percent to the 106.21 yen on September 8. It touched 106.28, the tallest from the October 2008 period. The American currency bolstered 0.1 percent to reach $ 1.2881 for every Euro. It earlier touched $1,2877, the most robust when calculated from July 2013. The American shared currency contributed 0.1 percent to reach 136.82 yen. Bloomberg Dollar Spot Index, which tracks a collection of the world’s top 10 currencies increased by 0.2 percent to reach 1,047.11. It had touched 1,047.18, the peak from July 2013.

In contrast, the pound slipped 0.1 percent to touch $1.6082 from New York close. It had earlier scratched $1.6077, its weakest from November 21.

The maiden applications for American unemployment benefits dropped by 2,000 to about 300,000 in the week ending September 6. This was the average estimate made by economists prior to the report being published by Labor Department won September 11.

In another Bloomberg survey, it has been forecast that the report from the Commerce Department will show that August retail sales in the US has increased almost 0.6 percent compared to the previous month.