US$ at 3 1/2-month high vs yen on Fed chair talk

London

THE dollar climbed to a 3½-month high against the yen on Wednesday, supported by speculation that the next chair of the US Federal Reserve will steer policy in a more hawkish direction.

Sterling was the biggest mover among major currencies, climbing almost one per cent against the dollar to an eight-day high of US$1.3259 after stronger-than-expected UK growth data cemented expectations that the Bank of England will raise interest rates next week.