Dollar rises on short covering, sterling suffers

       The dollar rose broadly yesterday, extending its pullback from a one-year low against the euro as traders continued to trim short positions in the US currency following broad losses so far this month.
       Agains t the yen, the dollar rose nearly a full percent on the day after speculative flows pushed the US currency higher in quiet trade in Asia, where markets in Japan and Singapore were closed for holidays.
       The pound continued to come under selling pressure, hitting a five-month low against the euro after the Bank of England said the pound's long-r un sustainable exchange rate may have fallen due to an increased focus on Britain's economic imbalances following the global credit crisis.
       By 0738 GMT, the euro had slipped 0.3% to $1.4662, easing from $1.4768 hit late last week, its strongest since September 2008.
       The dollar was up 0.8% at 92.00 yen,near the day's high around 92.20 yen touched in early European trade.
       Traders said leveraged names and momentum funds took advantage of thin Toky o trade to tr igger stop-loss orders above 91.60 yen, pushing the pair through technical resistance at 91.80 yen.
       Analysts said mounting short positions in the dollar may be a signal that it will recover some of its recent losses this week.
       "There's already a lot of long euro/dollar positions in the mar ket so it's difficult to push the pair higher," said Lutz Karpowitz, currency strategist at Commerzbank in Frankfurt.