The dollar headed for the highest level in more than a decade with the Federal Reserve the only central bank among developed nations considering raising interest rates this year as global rivals rush to ease policy.

The U.S. currency gained versus most major peers as the fewest Americans in almost 15 years filed applications for unemployment benefits. The ruble dropped as European Union officials discussed tightening sanctions against Russia. The Danish central bank cut interest rates for the third time in 10 days to defend the krone™s peg to the euro. The dollars of New Zealand and Australia, along with Turkey™s lira, fell amid speculation those nations may cut rates.

The Bloomberg Dollar Spot Index, a gauge of the currency™s performance against 10 major peers, rose 0.5 percent to 1,165.90 as of 3:33 p.m. New York time. It closed at 1,161.42 on Jan. 26, the highest in data going back to 2004.

The dollar gained 0.7 percent to 118.35 yen. It slipped 0.3 percent to $1.1319 per euro after reaching $1.1098 versus the common currency on Jan. 26, the strongest level since September 2003. The yen weakened 1 percent to 133.97 per euro.

Source : Bloomberg