Rallying dollar powers to 12-1/2 year high versus yen

London

THE dollar powered to a 121/2 year high against the yen on Thursday, as investors bet that US interest rates will rise later this year while monetary policy remains ultra-loose in Japan.

The biggest mover on major currency markets was the Australian dollar, which shed 1.2 per cent against a rallying greenback after disappointing Australian capital expenditure data prompted speculation about another rate cut next week.