HONG KONG—The dollar touched a three-week high on Thursday after minutes from the Federal Reserve’s July meeting pointed to U.S. interest rates staying higher for longer to bring down inflation.
The stronger greenback caused the pound briefly to dip below $1.2 in early European trading, its lowest in three weeks, the euro to drop to as low as $1.0146 and the Japanese yen to drift down to 135.45 per dollar.
This pushed the dollar index as high as 106.96, its highest since late July.
In the course of morning trading, however, the euro, sterling, and yen all pared their losses, recovering to trade flat on the day, leaving the dollar index at 106.65….