LONDON—The dollar held onto gains against other major currencies on Wednesday, ahead of the release of minutes of the U.S. Federal Reserve’s July meeting that could give further clues about the pace of further interest rate hikes.
The greenback has recovered the ground it lost since softer-than-expected inflation data last week led to investor bets that price rises may have peaked, weakening the dollar.
“The question is whether the Fed wants to use these minutes as a communication tool to push back against the view of a 2023 easing cycle,” ING currency analysts said in a note.
Several Fed officials have signaled over the past week that the central bank will still act decisively to combat inflation, helping lift the dollar back up….