A Bloomberg gauge of the US currency climbed as much as 0.8% on Wednesday, marking the dollar’s biggest intraday rally since March.
Fed officials drove the move by signaling growing support for interest-rate hikes this year, prompting traders to raise tightening bets.
The stronger dollar knocked the pound and euro down by their most in three months, while the yen slid past 160 per dollar.
Japan’s currency touched 160.79 per dollar — its weakest level since July 2024 — reviving concern that officials could face renewed intervention pressure.