By Kevin Buckland and Amanda Cooper
TOKYO/LONDON, June 21 (Reuters) – The dollar hit an eight-week high above 159 yen on Friday and reached its highest level in almost five weeks against the pound, as the patience of the When it comes to cutting interest rates, the Fed contrasts with the more easing positions of other institutions.
* The dollar index, which measures the performance of the US currency against a basket of six major currencies, rose 0.41% during the Asian session, erasing the week’s declines, after the second consecutive rate cut by from the Swiss National Bank and signs from the Bank of England of a reduction in August.
* For its part, the yen remained under pressure after the Bank of Japan’s decision to postpone reducing the stimulus for bond purchases until its July meeting.
* “Operators punished the yen with renewed enthusiasm,” taking it above the level of 159 units per dollar on Friday, according to Tony Sycamore, market analyst at IG.
* The Bank of Japan, at the behest of the Finance Ministry, spent about 9.8 trillion yen ($61.64 billion) to lift the currency from a 34-year low of 160.245 per dollar, hit on April 29.
* For this reason, the US Treasury on Thursday included Japan on a list of countries it is monitoring to label them as possible currency manipulators. China is among other countries on the list.
* The yen was stable at 158.97 units per dollar. In the previous session it had fallen to 159.12.
* The dollar index rose 0.2% to 105.79, holding steady after two consecutive weeks of gains.
* Sterling fell to $1.2637, near its lowest since mid-May. The Bank of England left interest rates on hold this week, but some policymakers said the decision not to cut rates was “finely balanced.”
* Data on Friday showed UK retail sales rose more than expected in May, largely due to milder weather.
* The euro was down 0.1% at $1.0686 after a series of preliminary surveys in June showed service sector activity in France contracted this month, while activity in the German economy slowed.
(Additional reporting by Kevin Buckland in Tokyo; Editing in Spanish by Natalia Ramos)
