Yen slides further but pound rebounds

NEW YORK (AFP) - The yen lost more ground on Thursday as Japan's prime minister and the central bank chief huddled over the challenge of meeting the country's growth and inflation goals.

Meanwhile the pound pulled up from its recent lows, ahead of a referendum next week that could see Scotland break from the United Kingdom and is too close to call.

The dollar-euro was flat.

The yen hit a fresh six-year low against the greenback, easily crossing the line of 107 yen per dollar, while the euro traded over 138 yen, still below the 144 peak hit at the end of 2013.

Japanese Prime Minister Shinzo Abe met on Thursday afternoon with Bank of Japan Governor Haruhiko Kuroda, who repeated a pledge to expand monetary easing measures, if necessary, as the bank strains to reach 2.0 per cent inflation by next year and shore up economic growth.

That target is a key part of Tokyo's bid to conquer the deflation that has weighed on Japan's economy for years.

The pound pulled back above US$1.62, having sunk sharply on fears that Scottish voters would choose to split with England.

The International Monetary Fund warned that a vote for independence would spark uncertainty in the markets.

"While this uncertainty could lead to negative market reactions in the short term, the longer term will depend on the decisions being made during the transition," IMF spokesman Bill Murray said.

In a client note, Nomura said: "The market is waking up from six months of extremely depressed volatility."