LONDON—The dollar held below two-week highs on Wednesday as traders awaited the release of minutes from the Federal Reserve’s December meeting, with growing expectations of a rate hike as early as March keeping the yen pinned near a five-year low. While the greenback’s nearly 3 percent rise in the past two months on the back of rising U.S. Treasury yields fizzled this week, traders were wary of adding more bullish dollar bets before the release of the minutes. “The Fed minutes will give some good color on thinking as they pivoted, and there are many questions over the Fed right now which are arguably the most important such as how many hikes, how fast the tapering and balance sheet reduction,” said John Marley, CEO of forexxtra, a London-based FX consultancy. The minutes, due at 1900 GMT, could underscore U.S. policymakers’ newfound sensitivity to inflation and their readiness to act. Markets …
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