High-flying dollar slips in Asia

TOKYO: The dollar retreated in Asia on Monday after surging last week on hints by the US Federal Reserve of higher than expected interest rates and Scotland´s decision to stay in the United Kingdom.

The greenback slipped to 108.80 yen, from 108.99 yen in New York Friday and a six-year high above 109 yen in Tokyo earlier Friday.

The euro firmed to $1.2861 and 139.93 yen from $1.2832 and 139.84 yen.

The pound fetched $1.6352, against $1.6289 in New York as Scotland´s "No" vote eased fears over the economic impact of a split from the United Kingdom.

The dollar´s upward momentum could soften for now after US Treasury yields declined last week, said a senior dealer at a major European bank in Tokyo.

"The dollar could hit a speed bump before reaching 110 yen," he told Dow Jones Newswires.

But Credit Agricole said investors´ interest in the dollar could return sooner than later -- as the Fed suggested interest rates might rise more than initially forecast when they are eventually increased, possibly from mid-2015."With event risk-induced uncertainty out of the way and healthy US economic releases expected, risk appetite will likely remain supported in the days ahead," it said in a note.