US$ bounces back towards 14-year highs

London

THE dollar bounced back towards 14-year highs on Tuesday, boosted by upbeat comments by the chair of the Federal Reserve that kept alive market expectations for a faster pace of US interest rate hikes next year than had previously been forecast.

The greenback climbed broadly but its gains were strongest against the yen, which slid around one per cent after the Bank of Japan kept monetary policy unchanged. The yen had surged along with the Swiss franc - another safe-haven currency - on Monday in the wake of deadly incidents in Turkey and Germany.