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Tokyo - The dollar pushed higher in Asia on Wednesday to hit a fresh six-year high against the yen, while the pound struggled to recover owing to concerns about next week's Scottish independence vote.
In Tokyo, the dollar jumped to ¥106.55 at one stage, its highest level since the global financial crisis in September 2008, before easing to ¥106.45 in the late afternoon. The US unit bought ¥106.20 in New York on Tuesday.
The euro weakened to $1.2926 from $1.2938, while it rose to ¥137.59 from ¥137.39 in US trade.
The dollar was lifted by Japanese importers purchasing the unit, while it also won support from the US Federal Reserve's stimulus tapering and expectations that it will hike interest rates sooner than later.
The divergence between US central bank policy and fresh easing efforts by the European Central Bank, as well as expectations for more Bank of Japan stimulus to rescue a weak economy, have been lifting the dollar recently.
"The underlying trend of a stronger dollar is, of course, driven by the Fed tapering but today's rise is due purchases by importers who have to buy the unit, and a psychological impact from the stronger stock market," said Marito Ueda, a senior dealer at FX Prime in Tokyo, referring to a positive session for Japanese shares.
"A cheaper yen and a stronger stock market always come as a set," he added.
In other trading, the Australian dollar fell to a six-month low of 91.63 US cents from 92.59c on Tuesday.
The pound edged up slightly against the dollar but was still under pressure ahead of the referendum on Scottish independence, which is too close to call, raising fears the country could break away from the United Kingdom.
The British unit bought $1.6119, up from $1.6105 in New York and a 10-month-low of $1.6084 in Asia on Tuesday.
"Further rising uncertainty as related to the Scottish independence referendum has been keeping the pound capped of late," Credit Agricole said in a note.
The dollar rose against other Asia-Pacific currencies.
It climbed to Sg$1.2647 from Sg$1.2611 on Tuesday, to 32.15 Thai baht from 32.09 baht, to 1 035.10 South Korean won from 1 031.59 won and to 43.92 Philippine pesos from 43.73 pesos.
The dollar also firmed to Tw$29.98 from Tw$29.94, to 60.78 Indian rupees from 60.43 rupees and to 11 795.00 Indonesian rupiah from 1 769.00 rupiah.
The Chinese yuan rose to ¥17.33 from ¥17.29.
