The dollar rose to its strongest levels of the year against rival currencies on Wednesday, in spite of growing concerns that the Federal Reserve will start to withdraw policy support and as Republicans continue to block Democratic efforts to raise the debt limit, threatening to plunge the government into shutdown. The dollar index—which measures the U.S. currency relative to a basket of foreign currencies—rose to an 11-month high of 93.83 on Wednesday. Meanwhile, the euro fell to $1.1660, its lowest since November 2020, while the British pound dropped to $1.3514, its lowest since January. Earlier this week, the Bank of England warned that UK inflation could exceed 4 percent later this year, while two policymakers called for an early end to the central bank’s quantitative easing program due to rising price pressures. Elsewhere, the yen, which is sensitive to U.S. yields as higher rates can draw flows from Japan, touched an 18-month low of 111.34 per dollar. The yen didn’t appear …