LONDON—The U.S. dollar held firm on Wednesday ahead of the release of closely-watched minutes from the Federal Reserve’s latest policy meeting, while the New Zealand dollar strengthened on the back of a record rate rise to curb rampant inflation.
The U.S. dollar index, which measures the currency against a basket of six counterparts, was broadly flat at 107.1, after shedding 0.65 percent the previous day amid a pick-up in sentiment that supported riskier currencies.
The dollar has broadly rallied against every major currency this year, boosted by supersized rate hikes aimed at curbing price rises, but recent cooler-than-expected inflation data has led investors to rein in bets on future rate increases….