On Monday, the dollar gained for the second straight session against the yen, as today it has raised to a more than two-week high, with traders covering short positions as they debated the timing of a tightening in U.S. monetary policy though there are some investors that remained cautious.

Data last week showed that large dollar short positions has been held by speculators.

Pound Wallowed against both the euro and dollar

After a a report said British interest rates would stay at rock-bottom levels for some time the pound wallowed against both the euro and dollar.

Dollar was 0.2% higher at 89.98 yen JPY=

In early New York trade, compared with late Friday’s levels the dollar was 0.2 percent higher at 89.98 yen JPY=, after rising to 90.46 yen, which is the highest since Sept. 25.

The gains has pushed the dollar further from the trough touched last week, which has been the lowest since January.

While recovering from early losses the euro rose 0.2% to $1.4765 EUR=. The single European currency also has shown a rise of 0.5% against the yen at 132.85 yen EURJPY=R.

Sterling fell broadly

Sterling fell broadly, it has lost 0.2% against the dollar GBP=, 0.6% against the euro GBPEUR=R, and 0.6% against the Swiss franc GBPCHF=R, after a report said British interest rates would stay at rock-bottom levels for some time.

Sterling has been traded around a five-month low against the dollar and a seven-month low against the euro.

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