3 October 2005, 17:04  The dollar ran to a 16-month high against the yen

The dollar ran to a 16-month high against the yen and a three-month peak versus the euro on Monday, boosted by anticipation of more U.S. interest rate rises and a disappointing survey of corporate sentiment in Japan. With investors focused more inflation than growth at the start of a new quarter, the dollar also surged to a two-month high against the Swiss franc and sterling. By 1150 GMT, the dollar was up 0.84 percent at $1.1928 versus the euro, after hitting a three-month high at $1.1919 earlier in the session. It was up nearly half a percent near a 16-month high versus the yen at 114.02. "Today we have the start of a new quarter, euro/dollar was held up last week by month-end. We also have a new half year in Japan so you'll probably see renewed allocations and given the rate premium across the curve from the U.S., I think the dollar has benefited," Rabobank senior proprietary trader Lee Ferridge said. The headline index for big manufacturers in the Bank of Japan's quarterly Tankan survey of business confidence was plus 19 for September, up a tad from the June survey but slightly below financial markets' expectations for a reading of plus 20.

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