Tokyo: The dollar added to recent gains to hit a fresh six-year high against the yen in Asia on Wednesday, while the pound struggled to recover owing to concerns about next week`s Scottish independence vote.
In afternoon Tokyo trading, the greenback cast off a morning dip to hit 106.52 yen, its highest level since the financial crisis in September 2008 and up from 106.20 yen in New York on Tuesday.
The euro weakened to $1.2923 from $1.2938, while it rose to 137.58 yen from 137.39 yen in US trade.
The dollar was lifted by Japanese importers purchasing the unit while the US Federal Reserve cuts back on its stimulus programme and expectations increase that the central bank will hike interest rates sooner than later.
An afternoon rise in Tokyo`s Nikkei 225 stock index also boosted sentiment, said Marito Ueda, a senior dealer at FX Prime in Tokyo.
"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.
"A cheaper yen and a stronger stock market always come as a set," he added.
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 $1.6109, up from $1.6105 in New York and a 10-month-low of $1.6084 in Asia 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 yen has been under pressure as weak growth data has fuelled speculation the Bank of Japan will announce further monetary easing measures at its policy meeting next month.
On Wednesday, government data showed Japanese core machinery orders rose for a second straight month, suggesting business investment was picking up, although the figures were slightly weaker than expected.
